Everybody is making music. 60k songs uploaded to Spotify Everyday

· By Matej Harangozo

Everybody is making music. 60k songs uploaded to Spotify Everyday

Sixty thousand tracks get uploaded to Spotify every single day. And less than 1.9 percent of all those artists will make more than one hundred dollars a year. That's a crazy number. What's up all my YouTuber's, thank you for watching. Man, this video is crazy. Just make sure you continue to watch. But make sure you also continue to subscribe, hit the notification button so you can see the new videos that are put out every single day. If you got to support my channel, I will support you back by creating more of this content, breaking down these business processes and rules and all that, which should help you grow your careers or just make you smarter because you learn on a daily basis. So thanks again for watching. And let's get into the Spotify numbers.

What's going on, guys? My name is Matej. Another day for MusicBizDaily. And let me kind of break down these numbers and how I calculated it. First of all, you know, the article says that Daniel Ek, the CEO of Spotify recently, I think it was this month that sixty thousand songs per day are now on average uploaded to Spotify every single day. In April 2019, he said that forty thousand tracks were uploaded every single day. Now through 2020 I've been saying fifty thousand probably seems like at some point of 2019 because, you know, when you say average, there have been some months where they had sixty thousand even back in 2019 and so on and so forth.

But, you know, towards the end of last year, I was probably off already saying fifty thousand tracks per day are being uploaded to DSP's, but its sixty now. And it's also safe to assume that if sixty thousand are uploaded to Spotify, that that's probably the same number for all the top 10 major other ones like Apple Music, Amazon and so on and so forth. So let's continue to break down these numbers. In 2019, there were five million creators on Spotify in 2019. In 2020 there are eight million creators. So that's almost a little bit over a 50 percent jump, right. If it was just 2.5 million more, that would've been a 50 percent jump. So that was just in 2020 during the covid year. 

All these I guess people had nothing else better to do than decided to be artists. mind you out of the seventy million tracks that were in or on Spotify and last year reported in November, I think it was two point two million were podcasts but it's a minuscule number. So anyway, let me continue to go. By 2025, Daniel Ek predicts there's going to be fifty million creators on Spotify with the estimated number of three hundred seventy five thousand tracks per day being uploaded to Spotify. Again safely, you know, we can assume that that's going to be happening to Apple Music, Amazon music, Pandora, Google play and all these other major distributors.

So just a fun fact that his article also mentions that there's thirty eight million minutes in the human life for, you know, saying content, I guess, consumption that's considering that I guess it's based on the fact that you're up for 16 hours a day and sleep eight. But obviously nobody is consuming Spotify on a single day basis. But that's an interesting fact, because if you're good at math like I am, you can potentially calculate with as many real uses or paid user that they have. How many average human minutes can we in tribute to real streams. You know, because this is where this whole fake third party streams are coming into play and why Spotify has been so aggressive with sort of trying to shut artists or creators down if they detected a heavy or large amount of fake streams.

Let me continue on, right. So the question is now out of the, what's the number? Let me see, seventy million tracks up there, eight million creators out of those eight million creators, how many are actually getting paid by Spotify? So Spotify says that 90 percent of streams are being contributed to fifty seven thousand creators. That's less than one percent out of the eight million. If you have eight million creators on Spotify and fifty seven thousand are responsible for 90 percent of the payable streams, that's less than one percent. So if you ever taking calculus and you do a little bell curve and you kind of look at the numbers, I'm not going to get into how, you know, came up with the equation. But that means that one point nine percent of those creators are actually making any type of money.

So outside of the 90 percent, there's another, you know, I'm saying I think it's point seven percent, there's fifty seven thousand out of a million. So than additional one percent, one point two percent are getting the rest, 10 percent, if that makes sense, is probably getting lost. But put it this way. Ninety eight percent of all the people on Spotify won't even make a hundred dollars a year. And that's with all of the Fakery and third party streams going all that you can purchase. And you should be able to make at least two hundred dollars a year if you're investing in some bullshit third party playlist, as an example. 

I'll give you another stat. Since my digital marketing agency has been in business probably since late 2019, we’ve only been in business for a little over a year and a half. We've had probably one hundred and fifty clients come through our program or, you know, being our clients. And I can tell you confidently that at least eighty five percent of all those clients have, at one point or another, used third party bullshit playlists. And now we teach every client that comes in. We try to kind of dead that right away and get them streaming the proper way through direct to consumer advertising. But, you know, that just kind of goes to show that, like, how do you actually make money as a musician? 

And the way you make money is you have to understand the business. You have to understand how to advertise. There's no way of getting around it. You can have all the fake streams you want. Yes, maybe you'll get paid out three grand. I've seen, you know, some of the artists get away with one point five million streams before they got shut down, which is, you know, likely five thousand dollars out of Spotify. But tis is just one platform. You know, I'm saying that they're able to do that. But they're not going back on Spotify with the same name at this point because they had too many fake streams from third party bullshit playlists.

But, you know, so that's doable. But come on, why would you want to do that? You probably spend five grand or spend more in playlisting just to earn that five and it builds you zero fan base and you got booted off of Spotify. So there's an education disconnection going on in the industry. Guys who already know that that's why I created my accelerator. That's why when you come on board as a client in my agency, we not only do marketing for you, but we try to teach the business and the proper ways to brand yourself. Because at the end of the day, streaming is not going to be only revenue.

Matter of fact, even the major, major artists streaming is really only like maybe 15 percent of their revenue tops. Because the labels are taking a majority of their streaming revenue for licensing costs and all of that. And they're adding their layers of fat in terms of price on those licenses. So, you know, streaming is good money, but for most artists, it won't be more than 15 percent or 20 percent max on the revenue. Hopefully that'll change down the line as more digital platforms are, you know, allowing you to monetize your content. And they're going to be paying out a little bit more for their monetization. But right now, this is what we're at, you know, I'm saying.

So I've been making estimates here and there of saying that, you know, how many musicians actually succeeded in industry? My estimate used to be like three to five percent. And that was generous because going off of Spotify data, which is a very large pool of data, which makes the confidence level rise in terms of like calculating how many artists make it. If according to their calculations, less than one point nine percent of the artists are actually making money from Spotify that sort of shows you the success rate in the music industry.

Just to give an example, restaurant industry is famously known that there's a 40 percent potential success rate, meaning that every restaurant business, 60 percent of them will fail in this first year. And obviously that number has probably changed to the negative or, you know, to more restaurants failing during covid unfortunately. Hopefully that's going to come back alive. But that was just to give an example that was the sort of average success rate in the restaurant industry before covid. It was 40 percent again, meaning 60 percent of all restaurants will fail. Unfortunately, with Spotify showing is that 98 percent of artists will fail and never make any money from their music.

But I'm not, you know, doing this video to be negative. I'm doing it to be positive because I believe that slowly but surely that two percent of the artists are going to making money is going to continue to rise. And it's going to go up because we have more education out there. There's more people teaching you the business like myself. My team and everybody that I'm involved with. And it's just it's going to shift, right. And also the consumer is a little bit more empowered to listen to what they like its not so much anymore of just the label money and advertising, shoving down content down your throat, you know, so that's changing as well.

But just pay attention to these numbers. And the reason I'm doing this video is to continue to prove to you that if you do not learn how the business works? If you do not pay attention to how marketing works and how to do proper marketing? And you won't give yourself a little bit more time besides just making music and making the tracks and spend it on learning the business, you're going to be, it's going to be very unlikely that you succeed and that's sad. Because there's so much talent out there and all you have to do is just in extra time into learn the business and the marketing. That's it. So I'm going to leave you with that. 

In the comments let me know what you think about this report. If you guys need to know what me and my team do and how we can help you to make sure that you're not the ninety eight percent. Click the link in the bio or the link in description below so you can figure out how we can help you. Share this video. Save it. You know the deal and I will see you guys tomorrow for another video for MusicBizDaily.