Spotify has released its annual Loud & Clear report, providing an in-depth look at the music streaming service's royalty payments to artists and songwriters. The report comes amidst ongoing concerns that Spotify does not fairly compensate creators for their work, with some even boycotting the company's events.

The report reveals that, for the first time, an artist who received one in every million streams on Spotify generated over $10,000 on average in 2024, a 10-fold increase from a decade ago. Additionally, the number of artists generating royalties has tripled since 2017, with over 200 artists surpassing the $5 million milestone.

However, despite Spotify's efforts to showcase its royalty payments, many in the industry remain skeptical. A recent report from Duetti found that Apple Music still pays artists twice as much as Spotify, with the latter paying $3.0 per 1,000 streams compared to Apple Music's $6.2. Spotify has dismissed the report, stating that "no streaming service pays per stream."

The Union of Musicians and Allied Workers (UMAW) has been vocal about the need for fair compensation, particularly for independent and smaller artists who struggle to make a living. The organization has called for Spotify to pay artists a living wage, with Congresswomen Rashida Tlaib and Congressman Jamaal Bowman introducing the Living Wage for Musicians Act last year.

According to UMAW, Spotify does not make direct payments to recording artists, citing a loophole in existing regulations. The organization supports the Living Wage for Musicians Act, which aims to increase streaming royalties for musicians to one cent per stream.

Spotify's report attempts to dispel misconceptions about its payout model, explaining that major streaming services calculate payouts based on streamshare, rather than a fixed per-stream rate. The company argues that this model allows artists and publishers to earn revenue on its platform.

Despite the controversy, Spotify's report highlights the growth of artists on its platform. The 10,000th-ranked artist on Spotify has seen their royalties increase almost 4x over the past decade, while the 100,000th-ranked artist has seen their generated royalties multiply by over 10x. Furthermore, nearly 1,500 artists generated over $1 million in royalties from Spotify alone last year, with 80% of them not having a song reach the Spotify Global Daily Top 50 chart in 2024.

The report also reveals the diversity of artists on Spotify, with those generating at least $100,000 in royalties recording music in over 50 languages in 2024, and those generating at least $1 million recording music in 17 different languages.

As the music streaming landscape continues to evolve, Spotify's Loud & Clear report serves as a response to ongoing concerns about fair compensation for artists and songwriters. While the report provides insight into Spotify's royalty payments, it remains to be seen whether it will be enough to quell the industry's concerns and calls for change.