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How Much Does Spotify Music Pay Per Stream? (Answered)

Are you an aspiring musician? Wondering how to make money from your music? Here is a comprehensive guide to streaming music and its earnings. 

Spotify is one of the most popular music streaming platforms, and with good reason. The service offers various music, including popular tracks from popular artists. Spotify pays its artists based on how many streams their music receives. However, how much does Spotify pay its artists for streaming their music?

Image of a spotify icon with a green background. Source: spotify, pixabay
Image of a spotify icon with a green background. Source: Spotify, Pixabay

Unfortunately, not knowing how much spotify pays can lead to miscalculating your income.

This article cover what a spotify is and how much they per stream. So if you’re an artist or are just curious about earning on spotify, this post is for you!

How much does spotify music pay per stream? As for how Spotify compensates its musicians, there are two main methods: flat fees and royalties. The first formula, called “fixed payments,” is based on an artist’s total worldwide streaming activity over a certain period, typically six months. Second, royalties are calculated according to how often a musician’s tracks are streamed on Spotify.

What is spotify?

Access millions of songs and other materials from producers all around the globe on Spotify, a digital music, podcast, and video service. Spotify is free for basic things like playing music, but you can also pay for Spotify Premium.

What is a spotify pay per stream?

When someone listens to a song via Spotify, Apple Music, or any other digital streaming service, the service will pay the artist a set amount of money, known as a “pay per stream,” for doing so.

Royalties from music streaming fall into two categories:

1. Mechanical royalties

2. Performance royalties

If an artist releases their music on one of these services, they will get a “pay-per-stream” or a set amount of money for each time that song is streamed.

1. The sum of Spotify’s streaming income

2. The worldwide payment agreed upon as a proportion of sales

3. The total of the platform’s streams

4. The total number of channels you’ve set up on the service.

How does spotify streaming payout works?

Spotify’s strategy for getting music to people is called “pro-rata” or “platform-centric,” which is similar to many other on-demand streaming services.

This means that the four points below will be used to decide how much of the platform’s earnings will go to each artist who releases content there:

Accordingly, there is no one source of income for the streaming industry. Instead, there are many different bins for different types of subscriptions, different regions, different countries, and so on. There is only one logical conclusion to be drawn from the existence of several stream types: not all streams are the same.

Hundreds of factors affect how much an artist makes, so the pay-per-stream rate will always differ for each artist.

How much does spotify music pay per stream?

On average, Spotify pays creators $0.003 to $0.005 per stream. That’s almost a 70/30 split in favor of the artists and rights holders, with Spotify pocketing the remaining 30%. Remember that a song’s rights may be held by the publisher, the author, or the master recording owners (the artist and/or the label, if the artist is contracted to either).

How do artists get paid from spotify?

Spotify doesn’t pay musicians directly, but rather the companies that own their music. Regarding music sales, Spotify claims that around 65% is shared with artists and songwriters. Artists pay the people who own the rights to their music—usually record labels or distributors—for the right to act as their representatives and put their music on Spotify.

Publication royalties go to the composers and/or owners of the music. Recording royalties, on the other hand, go to the recording artist. A musician’s salary might range from nothing to millions of dollars, depending on the terms of their contract with the owners of their work.

What can affect spotify royalty rates?

Artists are paid differently per Spotify stream. And here’s why: Three primary elements affect Spotify streaming rates:

Who do you distribute with

Spotify doesn’t pay artists for their work, even though they’ve agreed to let Spotify use it. Instead, your agreement with your music distributor or label will determine the royalty income you get as an artist on the site.

Consequently, the music distributor you’re dealing with (and the percentage of revenue they keep!) will directly impact how much money you make each stream on Spotify. Here at Ditto Music, our goal is to maximize the value of your streams. That’s why we don’t take a cut of the royalties you earn from people listening to your music online—you get to keep the whole amount.

Your listeners’ country of origin

Believe it or not, the location of your listeners makes a difference. The Spotify subscription fee varies by country.

Users in the United States will pay $0.0039 per stream, while those in Portugal will pay only $0.0018. Your pay-per-stream rate will likely be affected significantly if you have a large, diverse audience spread across the globe.

Your listeners’ spotify account plan

Spotify’s music streaming service has two different membership levels: free and premium, which costs money. When listeners sign up for Spotify Premium instead of the free tier, Spotify makes more money overall. As a result, when Spotify Premium customers play your music, you get more royalties.

Image of mobile phone while streaming on spotify music with an earphones beside it. Source: castorly stock, pexels
Image of mobile phone while streaming on Spotify music with earphones beside it. Source: Castorly Stock, Pexels

If you want even more tips and insights, watch this video called “How Much Does Spotify Pay Per Stream – Make Money With Spotify” from the Alec Forshag YouTube channel.

A video called “How Much Does Spotify Pay Per Stream – Make Money With Spotify” from the Alec Forshag YouTube channel.
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Frequently asked questions (FAQ)

Do you still have questions? Below are some of the most commonly asked questions about how much Spotify pays per stream.

Can artists live off music platform streams?

The answer to this issue is complicated, partly because the fees the streaming services pay for each stream vary for various reasons. For example, how much an artist makes per stream depends on factors such as the user’s account setup, the artist’s record company, and the country where the artist is based.

How much does spotify pay per monthly listener?

Between $3 and $5 will be paid for every 1,000 plays on Spotify. The average payout per stream on Spotify is $0.003. So your compensation per stream might range from $0.0033 to $0.0054 per month, depending on what share of the monthly stream pie you control.

Does spotify pay per song?

Contrary to popular belief, Spotify does not pay artists royalties based on how often their music is played or streamed. Instead, artists’ royalties depend on the type of music being streamed and any agreements they have with record labels or distributors.

Does spotify pay per song?

Contrary to popular belief, Spotify does not pay artists royalties based on how often their music is played or streamed. Instead, artists’ royalties depend on the type of music being streamed and any agreements they have with record labels or distributors.

How many Spotify followers do you need to get paid?

At least one playlist with at least 1000 organic followers is required: Emphasize the natural; owners of at least one playlist with 1,000 or more followers are eligible to be deemed, music curators.

Conclusion

Now that we have explained how much spotify pays, it is time to decide whether you are willing to be paid based on your streams. If so, start streaming music and earn money for years to come!

However, just as you can’t become an expert cyclist by reading a book, you can’t become a great spotify artist by reading articles alone. It’s time to take action! Go and put what you have learned into practice.

This article covered what Spotify is, what Spotify pays per stream, and how Spotify payout works. Here are some key takeaways:

Key takeaways

  • Access millions of songs and other material from producers all around the globe on Spotify, a digital music, podcast, and video service.
  • When someone listens to a song via Spotify, Apple Music, or any other digital streaming service, the service will pay the artist a set amount of money, known as a “pay per stream,” for doing so.
  • Spotify doesn’t pay musicians directly but the companies that own their music.
  • Amazon Music, the third most popular streaming service after spotify and apple music
  • You can also use a spotify stream calculator to work how much Spotify (and other streaming platforms) pay for a certain number of streams.
  • Being featured on playlists can significantly increase the number of streams. 
  • As an artist-centric streaming service, tidal has one of the highest royalty payment rates in the music industry. 
  • Spotify gets money from ads and paid subscribers, which is then given to the rights holders.
  • It’s now more important than ever for artists to release their music to every major platform, including spotify, deezer, amazon, and apple music. 

So, are you a Spotify-earning artist? And did I cover everything you wanted to know? Let me know in the comments section below (I read and reply to every comment). If you found this article helpful, check out my full blog for more tips and tricks on music production. Thanks for reading, and never stop making music.

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Audio Apartment Author
Written By Andrew Ash
Hey there! My name is Andrew, and I've been making music since I was a kid. I now run this blog all about home studios and music production. If you want to improve your home studio setup, this is the place for you!

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