It certainly is not easy to become a billionaire. While not impossible, billionaire status requires hard work, time, patience, and savvy. Demonstrating the possibilities of generating wealth, “Swiftonomics” (the economic influence of Taylor Swift) is inspiring new business approaches for musicians – and is indeed working well for the “Anti-Hero.” Yet, while Swift may be rolling it in since her Eras Tour, a recent tweet highlighted another individual in the music industry with Swift’s bank account beat. Spotify CEO Daniel Ek is now worth more than any musician ever.
Regarding some of the biggest names in the musical game, very few have gained billionaire status. Jay-Z upped his wealth into the billions from successful side hustles and his music. Many factors have lined the rap artist’s pockets between Jay-Z’s studio albums, touring, merchandise tie-ins, and his business success from his label, Roc Nation. Yet, the entertainment powerhouse is recognized for more than his record label, assisting in artist management, music publishing, tour production, and more for the artists he takes under the label’s wings. Jay-Z’s sale of Tidal and deals made with high-end alcohol brands, investment in real estate, and venture capital have all contributed to generating wealth for the artist.
Rihanna is another artist who has proven that the music industry can be a gateway to billionaire status. Her makeup line, Fenty Beauty, launched in 2017, has significantly contributed to her wealth. The line saw $100 million in sales within the first 40 days of its launch and is now valued at $2.8 billion. But Rihanna’s entrepreneurial spirit doesn’t stop there. Her other ventures, Savage X Fenty and Fenty Skin, further solidified her multimillionaire position, making her the wealthiest female musician and the second-richest female entertainer after Oprah.
While many know that Swift has landed herself billionaire status, The Tortured Poets Department artist is the only musician to have reached billionaire status from selling their music and touring efforts alone. Her high-in-demand music, earnings from streaming deals, music sales, concert tickets, merchandise, and even concert films have helped Swift’s net worth reach $1.1 billion, with “The Eras Tour” grossing over $1 billion in revenue alone.
Yet, Jay-Z, Rhianna, and even Swift have proven little competition for the Spotify CEO, who is now worth an estimated $4.9 billion – officially becoming richer than any music artist in history.
A recent tweet highlighted the staggering wealth of Ek, generated by his music platform, posting, “Did you know the CEO of Spotify is wealthier than any musician in history—and has 4X the net worth of Paul McCartney? Now you do. There’s more money in disrupting music than creating it.”
Ek’s worth is estimated at $4.9 billion, according to Forbes. Forbes updates its list daily, with individuals’ public holdings updated every five minutes when the stock market is open and individuals tied to private companies updating their net worth once daily. A quick search would highlight the three mega-musicians’ spots on the list.
Part of Ek’s wealth comes from how Spotify pays out royalties, particularly to smaller artists who need to see their songs stream 1,000 times every 12 months to be eligible for a payout. Regular musicians hoping to make money on the audio streaming service need about 334 streams to make $1. While groups like United Musicians and Allied Workers have protested, asking for fairer royalty rates for artists on the platform, Ek’s climb to 10 figures doesn’t appear to be slowing down.
