Nigeria Stands Out as Spotify Disburses $10 Billion to the Music Industry in 2024
Spotify reported a record-breaking $10 billion in royalty payouts to the music industry in 2024, bringing its total disbursements to nearly $60 billion since its launch in 2008. Notably, Nigeria is the only African country experiencing significant growth in the streaming market at this time.
The platform, which now boasts over 500 million paying subscribers across all streaming services, attributes its success to strategies focused on retention, personalization, and innovative features such as AI DJ, Daylist, and Spotify Wrapped. The availability of an ad-supported free tier has also played a key role, with 60% of Premium subscribers having initially used the free version.
Spotify’s expansion into multiple markets with localized pricing has fueled growth in key regions, including India, Brazil, Mexico, and Nigeria. David Kaefer, Spotify’s Vice President of Music Business, emphasized the importance of long-term investments in these emerging markets, highlighting the increasing willingness of consumers to pay for music.
In 2023, Spotify paid Nigerian artists over $16.8 million, with the number of artists earning more than $6,700 annually quadrupling since 2018. More than half of these earnings went to independent artists and labels.
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A major milestone in Spotify’s growth is the rise in artists earning six-figure incomes, with over 10,000 musicians now generating more than $100,000 annually from the platform alone. Nigeria’s prominence in this landscape is largely due to its youthful population, which has driven local streaming numbers and sustained revenue growth.
Kaefer reaffirmed Spotify’s commitment to innovation, stating that the company aims to help artists expand their reach, engage fans, and increase monetization opportunities, ensuring continued growth in the global music industry.
