by Daniel Brouse
July 2, 2025
There’s a lot of noise online about how unfair Spotify is to musicians. But the reality is more nuanced, and in many ways, Spotify’s payment system can actually benefit smaller artists far more than the old record label system ever did.
First, it helps to understand that Spotify operates much like the traditional record industry, just in a digital ecosystem. In the past, a record label might spend $500,000 on an artist for marketing, A&R, and promotion. Out of that, around $400,000 could go toward getting the artist’s music in front of listeners through radio play, physical distribution, and media placement. Today, that $400,000 often goes to Spotify for curated playlist placements and other digital marketing to give the artist a shot at reaching a wide audience.
If the artist is a big name or catches a wave of luck, they might make $1 million from Spotify streams, recouping their costs and turning a profit. But more often, the reality is that artists don’t hit that level of streaming success, and they end up owing the label $400,000–$500,000 in recoupable expenses, never seeing significant income despite years of work.
Meanwhile, smaller, independent artists who would have had zero chance of getting radio airplay or national distribution under the old system now have a pathway to listeners and income. These artists can upload their music to Spotify for free or with minimal upfront costs and start earning money from streams without needing a six-figure marketing budget or label gatekeeping their careers.
Is it perfect? Of course not. The per-stream payouts are small, and it still requires significant hustle to build an audience. But it levels the playing field in a way that was unthinkable a generation ago. Artists can release music globally, build a fanbase, and generate income without ever signing away their rights or taking on crushing debt from a label.
Speaking from personal experience, I’m actually quite satisfied with the pay I receive from Spotify. It reflects streams I am genuinely earning from real listeners who want to hear my music, without me having to gamble on a high-risk label advance that could leave me in debt if things don’t break exactly right.
Spotify isn’t the villain many make it out to be. For countless smaller artists, it has become a practical tool for reaching listeners, generating income, and building a sustainable career on their own terms—something the old system rarely offered unless you were among the very lucky few.