Spotify has become one of the most profitable streaming platforms in the music industry. In 2024, Its executive team including CEO Daniel Ek had their biggest Spotify stock payout. This massive pile of cash came out to over a billion dollars. It is no surprise its financial model has faced constant backlash with concerns about how little artists are paid per stream. Recently, a popular tool, the Spotify Unwrapped calculator, was shut down after facing legal pressure from Spotify’s legal team.
The Spotify Unwrapped Calculator
The Spotify Unwrapped calculator is a straightforward online tool that uses the listener’s total streams of an artist, to calculate how much money they were paid for those streams. The formula was simple: multiplying an artist’s total streams by $0.003—the average amount Spotify paid per stream. The results are often eye-opening, especially for emerging artists. They quickly find out that the vast number of streams they accumulate often translates into just a few dollars in royalties.
The Message After the Shutdown
After the Spotify Unwrapped calculator was taken down, the creators left a message for all of its users. The site emphasizes that while the tool had been removed due to legal threats, the formula used to calculate artist payouts was still available. Users can use it to access and apply on their own.
The message highlights that despite Spotify’s efforts to suppress the tool, the push for artist compensation was far from over. It encouraged users to take action by joining the United Musicians and Allied Workers (UMAW). This is an advocacy group that fights for artists in the streaming era.
In essence, the calculator served as a heavy reminder of the challenges artists face in an increasingly digital music landscape. The shutdown only amplifies the need for a better financial model for artists who contribute to platforms like Spotify.