Spotify recently trumpeted that it has paid out nearly $40 billion to music rights holders since its launch in 2006, an impressive-sounding number. But few in the industry were impressed. Artists certainly weren’t.
In its most recent earnings report, the music streaming leader celebrated its $3.4 billion in fourth-quarter 2022 revenue and 205 million paid subscribers, representing a free-to-paid subscriber conversion rate of 42% that’s the envy of the entertainment business. That didn’t please investors, either. Spotify’s stock price is about a third of what it was just two years ago.
Essentially no one is happy, and here’s why.