The Town with Matthew Belloni Is Streaming Killing Music—or Saving It? With a Top Spotify Exec
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May 19, 2025 Charlie Hellman, Spotify's VP and global head of music, shares insights into the music industry. He discusses the tumultuous impact of streaming, revealing how artists earn from Spotify and their frustrations. The conversation also touches on the competitive landscape against platforms like YouTube and the rising trend of AI-generated music. Hellman highlights the complexities of artist visibility and compensation, addressing ongoing challenges while emphasizing Spotify's role in enhancing artist relations. He concludes with thoughts on upcoming industry changes.
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Spotify's Royalty Payout Reality
- Spotify has increased artist payouts tenfold since 2014 but subscriber growth outpaces payout growth due to lower prices in new markets.
- Two-thirds of music revenue goes to music owners, but actual artist earnings depend on label or distributor deals outside Spotify's control.
Artist Frustrations Explained
- Artist frustration often comes from misunderstanding royalty flows and the difficulty of achieving success in music.
- Millions upload music, but only a small percentage break out and earn substantial income, creating a paradox of abundance and exclusivity.
Know Spotify's Payment Model
- Understand that Spotify does not pay artists per stream but uses a percentage-based payment model.
- Recognize that bundling music with audiobooks means shared revenue, but legal disputes confirmed Spotify's compliance.