Spotify executives have reportedly cashed out over $1.1 billion in firm inventory in 2024, a determine that will take artists an astronomical 314 billion streams to match by means of royalties.
That is based on Music Business Worldwide founder Tim Ingham, who at the moment bemoaned the disparity in a LinkedIn submit.
A report printed by the outlet on Wednesday says Spotify CEO Daniel Ek has bought 875,000 shares of Spotify for a complete of $283 million this yr. That determine pales compared to the money amassed by Ek’s co-founder, Spotify ex-Chairman Martin Lorentzon, who has bought 1,488,364 shares for a staggering $556.77 million.
This eye-popping disparity underscores the continued pressure between streaming platforms and musicians, who’ve lengthy argued that the at the moment’s compensation construction is basically damaged. Streaming has reworked music consumption, however most artists—notably unbiased musicians—battle to earn a residing wage from the royalties their songs generate.
A latest examine urged that unbiased artists at the moment must accrue 5 million streams to earn the equal of the U.S. minimal wage. That was earlier than Spotify’s controversial announcement that musicians and songwriters would wish to fulfill a minimal streaming threshold earlier than they’re eligible to accrue royalties.
The backlash not too long ago got here to a head after Ek myopically claimed that the price of creating content material is “close to zero” earlier than trying to stroll again his feedback, which he characterised as “clumsy.” Digital music icon deadmau5 lambasted him on the time and threatened to take away his music catalog from Spotify.
Spotify inventory has surged by 141% for the reason that starting of 2024, greater than doubling in worth, per Barron’s.
