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The company said it pays royalties to rights holders, adding that it does not have “visibility” on where the money ultimately goes because earnings are based on artists’ individual contracts with their labels.
A spokesperson said: “Spotify does not pay artists or songwriters directly. We pay rights-holders, these are typically record labels, music publishers, collection societies.
“These rights-holders then pay artists and songwriters based on their individual agreements.”
The amount of money earned by artists will vary, but the BPI noted the average royalty rate for UK artists signed to major labels was around 26%, according to a 2021 study from the Competition and Markets Authority.
As a result, the performer ultimately earns about 16% of a stream’s overall value.
However, Spotify is not the only streaming service to generate revenue for artists, and many pop stars make more money from other income streams such as live tours.
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