Artists face unique challenges in the current music landscape. Streaming services dominate music consumption. While growth numbers soar, the reality of earning paltry royalties remains harsh. A recent article in CBC breaks down Spotify’s self-reported success. In 2024, Canadian artists earned nearly $460 million in royalties on the platform. A whopping 92% of that amount was driven by foreign listeners.
On first inspection, these numbers appear healthy, and in a sense they are. They reflect that Canadian artists are attracting more listeners than ever before, expanding beyond borders and attracting fans worldwide. For a select few, like Montréal-born artist Patrick Watson, streaming platforms have provided unprecedented access. Older guardians might never have given a thought to this level of reach. Spotify’s latest “Loud & Clear” report highlights that over 1,000 Canadian artists now earn more than $10,000 annually. They achieve this on the platform. This number has doubled since 2017.
But when you begin to consider how much of that actually makes its way into artists’ pockets, the euphoria dissipates.
While Spotify has enormous payments, the company claims to have paid out over $9 billion to rights-holders in 2024 alone. The “rights-holder” is not typically close to the artist themselves. Labels, publishers, and distributors typically get a large cut before the artist sees a dime. In the majority of cases, particularly on major-label contracts, artists are compelled to earn pennies on each stream. The system’s opacity and lack of transparency have infuriated artists for decades. This frustration is especially true for those lacking the power of established superstars.
This imbalance is more than an annoyance; it is a sign of a fundamental failure of the current royalties framework. Spotify has tried to shift perspectives by showcasing success stories. They emphasize the role of independent artists, who now represent nearly 40% of all royalty recipients. However, numerous musicians report being unable to earn a living wage. Only a very small percentage of professional artists on the platform earn what could be considered a living wage. This group makes up roughly 4%. Fewer even come close to six figures.
To aspiring and mid-level artists, the flaws in the system can be particularly discouraging. Spotify’s latest changes to its monetization terms, like requiring tracks to achieve a 1,000-stream level before they are entitled to royalties, disproportionately harm small artists. Critics argue that the policies widen the gap between lucrative acts and the thousands of independent acts. These independent acts are fighting to get ahead.
And still, streaming isn’t going away anytime soon. So, how can artists take control of their earnings? The economy often appears designed to keep them locked out.
Diversification is one possible answer. Artists who rely only on streaming for income face unpredictable algorithm changes. They also encounter platform policy adjustments. On the other hand, creators who build devoted fans on platforms like Patreon are more likely to achieve financial stability. They also generate income from merchandise and through sync placements. They can also use direct-to-fans platforms like Bandcamp. Curate content that appeals on an international level. Experiment with multilingual drops. Being added to global playlists can also work to drive maximum visibility and revenue possibilities.
But these are temporary solutions, not lasting solutions. What the industry actually needs is structural change. One more commonly discussed potentiality is a “user-centric” payment system. In this system, a listener’s subscription fee is passed on to the artists they listen to. This is different from the current method where fees are collectively gathered and paid out on a per-marketing-share basis. This would eliminate some of the biases in the current system that overcompensate already successful artists.
And in addition to the payments, there’s a growing call for more openness. Artists and their cliques ought to know how payments are calculated, how fees are deducted, and how money moves from listener to creator. Currently, even knowledgeable musicians end up confused in contracts and streaming regulations.
Spotify’s report verifies two uneasy truths. Streaming has given artists access to incredible opportunities. However, the road to decent pay remains frustratingly narrow. While some are succeeding, the others are cobbling pay together in a variety of endeavors, working in a system that still strongly favors one direction.
Until more balanced arrangements come along, artists will continue to play a game whose rules are unbalanced and opaque. The industry needs to stop treating these issues as growing pains. They must start to recognize them as symptoms of a model long overdue for an update. This model should keep a semblance of fairness and compromise. It needs to better the conditions of the industry for the artist, the producer, and those working independently.
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Source: CBC News, “Spotify says Canadian artists earned nearly $460M on platform last year,” June 2025. Read the full story here.
Sonus Magazine 