Back in 2014 the music industry wasn’t as strong as it is now. Originally, Spotify were only able to contribute $1 billion, but as of 2024, this has risen to $10 billion.

In 2014 the entire music industry hit a point where money was tight. Revenue wasn’t high, and therefore what companies were able to invest into the industry was less than what was needed. The industry as a whole saw revenue of $13 billion.
This was for all global recorded music combined. When you compare that to Spotify’s investments of $10 billion in 2024 alone, that’s quite significant. To date, Spotify have contributed around $60 billion since they were first founded.
At this current stage, there are more than 500 million paying listeners worldwide across every streaming platform. If this total reaches 1 billion, imagine the revenue that would be brought back to the music scene and, better yet, independent artists pockets.
Spotify have highlighted the efforts streaming services have made to join together collectively to prioritise paying customers. After all, each subscriber makes up a portion of the overall revenue earned in the streaming market.
Spotify’s view on their impact
The streaming giants Spotify have mentioned their retention is extremely high. They feel this is down to the personalisation and curation options they offer within their platform. We feel, their constant efforts to keep their service updated is likely having an impact.
Unique to Spotify are things like AI DJ, daylist and Wrapped. While other platforms have tried to introduce similar tools, they haven’t been half as successful as Spotify. With an ad-free option, Spotify secure more sign-ups to their Premium subscription.
Allowing users a try before you buy approach shows an individual why they might need more from the platform. Spotify has noted that more than 60% of Premium users were once on the free plan. It goes to show their approach has benefit.
Around 10 years ago, there were multiple markets that couldn’t be monetised within. However, over time, there has been significant growth in these regions. India, Brazil, Mexico and Nigeria were all part of this investment.

Artists no longer need a manager or record label to release music, and this is a movement that has become so freeing. Allowing so many smaller, independent artists to find a space for themselves within the music industry.
It was harder 20 years ago to be discovered outside your local area. You had to have a break-through with a major label to be a worldwide artist. Now, you can send your music to distributors and have your track live in Spotify just weeks later.
Back in 2014 it is thought that only around 10,000 artists generated $10,000 or more each year through Spotify. Now, we’re seeing more than 10,000 artists create over $100,000 each year through just Spotify. The growth in that timeframe is extraordinary.
