Spotify Forces Takedown of Artist Royalty Calculator Through Legal Action
Spotify has shut down the 'Unwrapped' artist royalty calculator following legal threats, amid growing controversy over streaming payments and executive compensation.
Spotify Unwrapped website error screen
The calculator, which demonstrated the contrast between artist streaming payments and executive compensation, was designed to show music fans how little artists earn from streams. Users could multiply their total Spotify Wrapped streams by $0.003 to calculate artist royalties before label splits and revenue sharing.
The site now displays a message stating it was removed at the request of Spotify's legal team, redirecting visitors to the United Musicians and Allied Workers (UMAW) website.
This shutdown comes as Spotify executives engage in significant stock sales totaling $1.25 billion in 2024:
- Daniel Ek, CEO: $350 million
- Martin Lorentzon, Co-Founder: $550 million
- Gustav Söderström, Chief Product & Technology Officer: $106 million
- Katarina Berg, Chief Human Resources Officer: $38 million
- Alex Norström, Chief Business Officer: $63 million
- Dustee Jenkins, Head of Public Relations: $6 million
Spotify's stock has nearly tripled in value, approaching a $100 billion market capitalization. This follows major cost-cutting measures in 2023, including a 25% workforce reduction and Premium subscription price increases across multiple markets.
According to Forbes, CEO Daniel Ek's net worth has reached approximately $7.3 billion, while the company continues to face criticism over its artist payment model.
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