Spotify employees earn big compared to average artists
According to Digital Music News, Spotify employees earn big. Their annual salaries show a massive gap between what people earn working in tech compared to what your average artist earns.
The irony, of course, in all of this is that artists are the content providers without which tech companies like Spotify would not exist, so you can see why this is of interest to us.
The average salary at Spotify is now $168,747 (R 2,67 million) per year. They came to the number by working out the average earnings from the CEO to receptionist and everyone in between.
The earnings include various types of remuneration such as direct payments, company shares, and tax-deferred pensions.
The company has grown exponentially in the last five years and with that so has the average salary, and in 2016 Spotify employees earn big.
Back in 2010 the average Spotify was at $66,972 per year, that number has grown by 152% today.
Meanwhile, the losses for the company amounted to $188.7 million in that same time.
Spotify employees earn big and the increase in earnings is most prevalent in the highest levels of the company. Annual compensations for the highest levels reached $18.9 million a year – this is an increase of 300% since 2014.
Despite the impressive nature of the growth in salaries, there is another side to this story. They are functioning on borrowed money; the company claims it needs the stronger salaries to justify competitiveness and innovation. This is a line typically used within the tech world.
Artists on the other hand are getting a whole lot less money than the Spotify employees. The same artists, whose creative work gets the subscribers and customers in the first place, are over looked when divvying up company money.
Royalty payments have increased but most of this new money is going towards record labels. This means that the artists are still pretty much last in line when it comes to getting a big pay day from the world of streaming. Spotify has also announced a new deal to stream user created DJ mixes.
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