Spotify has announced that it paid Nigerian artists over ₦25 billion in streaming royalties in 2023, according to its annual Loud & Clear report, which focuses on the Nigerian market. This figure represents a significant increase from the over ₦11 billion paid in 2022, marking a 2,500% growth in royalties to Nigerian artists since 2017.

While Spotify is a major player in music streaming revenue, artists also benefit from other platforms like YouTube Music, Apple Music, and Amazon Music.

The global streaming giant disclosed that it had distributed $9 billion to artists, labels, and other rights holders in the last year, a figure that has nearly tripled over six years. This contribution is part of the more than $48 billion Spotify has paid since its inception, making it the largest annual payment to the music industry by any single retailer.

Loud & Clear Report on Nigeria

The Loud and Clear report highlighted that the number of Nigerian artists earning over ₦10 million from Spotify has quadrupled since 2018. In 2023, global listeners discovered Nigerian artists nearly 950 million times. Although Afrobeats remains the most popular genre, there is a notable diversification in musical tastes, with increasing popularity for local genres.

In 2023, the royalties paid to Nigerian artists, with over half going to independent artists or labels, underscore the role of streaming services in democratising music distribution. The top five music genres exported from Nigeria were Afrobeats, Nigerian Pop, Afropop, Nigerian Hip Hop, and Afro R&B. Additionally, local genres like Highlife, Igbo Pop, and Fuji saw substantial increases in listenership.

Noteworthy artists in 2023 included K1 De Ultimate leading in Fuji music, Adewale Ayuba with the top Fuji track "Koloba Koloba," and Chief Stephen Osita Osadebe's "Nwanem Ebezina" leading in Highlife. KCee’s "Ojapiano" gave a vibrant boost to Igbo Pop.

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Spotify's success continued into the first quarter of 2024, with the streaming platform reporting a subscriber base of 239 million, up 14% year-on-year, and 615 million Monthly Active Users, a 19% increase from the previous year. Revenue for the first quarter reached €3.6 billion, up 20% year-on-year, with a Gross Margin of 27.6% and an operating income of €168 million.

Co-founder and CEO Daniel Ek expressed optimism about the company's performance, stating,

"We’ve talked about 2024 as the year of monetization and we’re delivering on that ambition. With a focus on strong revenue growth and margin expansion, we are well-positioned to reach our ambitious plans."