Spotify just shared some big news: the streaming giant paid a whopping $10 billion to the music industry in 2023. Since starting up, the company has handed out nearly $60 billion in total payouts. That’s a lot of cash flowing through the music world!

This announcement comes as Spotify aims to counter claims that it doesn’t fairly compensate artists. While the payout includes publishers and other partners, it’s clear the company wants to show it’s a major player in supporting creators.

For context, global music streaming is booming. There are now over 500 million paying subscribers worldwide, and Spotify alone boasts 252 million of them. Interestingly, more than 60% of its users are on the free, ad-supported tier.

Spotify also highlighted that over 10,000 artists now earn $100,000 or more annually from streaming. That’s a big jump from 2014, when the same number of artists were making $10,000 a year. Still, some argue the payouts could be better.

Recent data reveals that Spotify pays less per stream than competitors. For every 1,000 streams, Spotify offers $3.0, while Amazon Music, Apple Music, and YouTube pay $8.8, $6.2, and $4.8, respectively. Plus, despite raising subscription prices, Spotify’s average payout has dipped.

Another factor is Spotify’s Discover Mode, which helps artists gain visibility but reduces their earnings per stream. This means they need more plays to make the same income.

With 99,000 tracks uploaded daily and global streams hitting 4.8 trillion last year, competition for listeners’ attention is fiercer than ever. While Spotify is pushing to attract more paying users, the industry will be watching to see how it balances growth with fair pay for creators.