Photo Credit: Spotify Unwrapped
Spotify CEO Daniel Ek has been busy selling stock this year, becoming a multi-billionaire worth around $7.3 billion according to Forbes. Now, the calculator for showcasing how relatively little Spotify pays to artists — and the absurd contrast to top-level Spotify executive compensation — has been shut down due to the threat of legal action.
Digital Music News reported on the existence of Spotify Unwrapped this year as a calculator to show music lovers how little artists are paid from streaming services. Plugging in the data generated by Spotify Wrapped was relatively straight forward; now the calculator is gone with a message in its place.
“This site used to be a parody of Spotify Wrapped that called the company out for its predatory treatment of artists,” the message begins. “It has been removed at the request of Spotify’s legal team. You can still join our fight for Justice at Spotify at the United musicians and Allied Workers (UMAW) website.”
Despite the shutdown, the site still includes the formula behind the calculator for artists and music lovers who are curious. “Artists can multiply their Spotify Wrapped total streams by $0.003 to calculate royalties Spotify paid out for music. If you have a label and/or bandmates that share these earnings, you might also want to divide that total appropriately.”
Spotify is a money-maker for investors, with the stock popping off this year and reaching nearly $500 per share. Daniel Ek took advantage of the high tide and sold around $350 million in shares according to U.S. Securities and Exchange Commission (SEC) filings. Stock sales accelerated in the month of December with around 20 Spotify insiders dumping stock at its new highs.
Those new heights were achieved after massive cost-cutting measures last year, including a 25% reduction of the workforce in 2023. Spotify also increased the price of its Spotify Premium subscription across several markets in 2023. The stock sell-off among Spotify insiders has reached $1.25 billion in 2024 alone.
How Much Stock Did Spotify Insiders Sell This Year?
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- 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
SPOT stock value nearly tripped in 2024 and the company is approaching a $100 billion market capitalization. The stock sell-offs by executives accelerated throughout November and December and it comes as music fans were left groaning about the poor state of Spotify Wrapped this year.
