Spotify expects to pay $4 billion to artists by the end of 2020

Spotify has announced that this 2020 they have paid $1 billion to artists every quarter and they plan to increase that figure in the last quarter of the year. Therefore, they expect to pay by the end of this year over $4 billion to artists.

Universal Music Group and Sony Music Group are a clear example of how the pandemic has increased the earnings of the majors in the third quarter of the year thanks to streaming revenue and of course a big part of this revenue has come from Spotify.

However, artists and composers are still claiming to be paid fairly. This is the everlasting dilema of an industry that seems not to be profitable, at least not for everyone.

And although Spotify keeps on increasing its number of subscribers and income, it also keeps on rising its loss, for now, they have lost more than $500 million in 2020 which is a very bad situation for shareholders.

Good News are…

MUSIC RELEASES HAVE INCREASED A 13% IN SPOTIFY DUE TO THE PANDEMIC 

Artists that can see every day it is more difficult to go on a tour or play live on concerts, and therefore make money with it, have decided to keep on creating and releasing new music to the market as the only viable alternative to earn money in pandemic times.

Spotify and other platforms seem to continue being a good entertainment option for users in pandemic times, but, will they continue to be an option after the price rise planned by Daniel Ek? and therefore, will at last those platforms be a good source of income for artists?