According to the International Federation of the Phonographic Industry ( IFPI ) , Brazilian artists have seen their Spotify revenues quadruple since 2018, reaching R$1.2 billion in 2023. Spotify's growth in Brazil has paralleled technological advancements in music consumption, with the platform launching in the country in 2014.
Streaming services have revolutionized the distribution of independent works and transformed consumer habits. Previously, illegal means were the most accessible option for those who couldn't afford physical albums. However, streaming platforms have reduced costs for consumers and provided opportunities for independent artists.
In an interview with the UOL , Spotify's business leader, Roberta Pate , stated ( via UOL ): “Brazil experienced a very significant acceleration process last year. Even in the quarterly reports that our finance team produces, there are some significant changes in growth exceeding what we had expected,” she affirmed. “In 2023, revenues grew 27% compared to 2022.”
“70% (of what we passed on to Brazilian artists) went to independent artists. So, it’s very significant that we’re shifting this concentration away from the top of the pyramid and starting to really distribute it to the decentralized artistic class, from major labels to independent artists and other genres.”
How does royalty payment work on Spotify?
According to Spotify , royalties are defined in two categories:
Recording royalties: the holder of the recording rights receives their share through a transfer from the record label or distributor. Thus, they receive royalties based on a thousand streams; that is, for every thousand streams of the same song, the value is monetized, both in plays on Free and Premium .
Songwriting royalties: the owner or composer of a song receives royalties paid out by their publishers, management companies, and agencies in the territory where the song is used.
In most cases, payment is made once a month. Spotify has no information regarding dates or agreements between artists and their representatives after the platform transfers the funds.
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