Streaming Payout: How Much Does an Artist Get on Different Platforms?

As a fan, we always want to listen to the content of our favorite artists. But not all of us can buy physical merchandise or albums. Many of us can support our favorite artists by streaming music on different platforms. But at some point, ask yourself if that’s enough.

Many streaming platforms don’t reveal how much they will pay the artist, but some will pay a fraction of a cent when the song plays.

Standard costs are not paid to them. Therefore, if your main goal is to support artists, it is important to choose the best streaming platform for their work.

To help you, we have found out how many artists will participate in various music streaming platforms. Let’s take a closer look here.

Types of artist loyalty streaming platforms to use

The paid subscription model has become popular and has taken over from other models. Total sales of physical copies decreased by 30%. Paid subscriptions increased by 12% in 2020, and this number is expected to grow further in the coming years.

Image source: RIAA-Revenue-Statistics.pdf

Revenue in the music streaming segment is expected to reach $ 26.61 billion in 2022. In addition, revenue is expected to grow at 8.10% annually between 2022 and 2026, with a market size of $ 36.34 billion by 2026.

image: (Source).

By comparison, we found that most of the revenue was generated in 2022 at US $ 9,818.00 million. The number of users in the streaming segment is expected to reach 959 million by 2026. User penetration will reach 9.4% in 2022. It is expected to reach 12.2% by 2026.

Artists earn from royalties, despite changes in the way music lovers listen to their favorite content. This is very similar to making money from selling physical copies.

All music streaming platforms such as Spotify, Melodify, Apple Music and Deezer have allowed artists to put their songs into their library. Some platforms pay a reasonable amount in return.

Each artist receives a fixed amount each time the user plays a song. Music streaming platforms pay artists using different types of payments. These include:

Mechanical fee

This type of royalty is generated each time a song is played digitally or physically. With such an interactive streaming platform, the user can decide which song to play. However, digital playback of a song occurs primarily when the user presses the Play option. However, for non-interactive platforms, royalties are under “Performance Loyalty.”

However, the artist owns a certain amount each time the song is played in accordance with the copyright law of the royalty. The automatic usage rate for songs less than 5 minutes is 9.1 cents per stream, and for songs longer than 5 minutes it is approximately 1.75 cents per minute.

Performance fee

This royalty type is the fee that publishers and artists receive each time they publish their music. Performance fees are processed by PRO. The performance rights management body collects license fees from both parties who use the streaming content and pays the publisher and songwriter in the form of performance usage fees.

In most cases, these usage fees will be discussed between PRO and the streaming platform. This is about 6-7% of the revenue of the online music streaming service platform and comes from the all-in loyalty pool. The royalty for digital stream performances in the United States is specified by the Copyright Royalty Board (CRB).

Payment to the recording owner

The report that the music industry has made the right notes shows that global norms maintain 30% of subscription revenue, 70% for distributors, 53% for recording companies and 10% for publishers. is showing. Over 2 million subscribers are using one or another music streaming app. However, when it comes to how much an artist produces on a music streaming platform, more than 99% focus on the amount of money the recording owner earns.

image: alphansotech.com (India)

The recording owner’s payment is an amount that includes all types of royalties associated with music that are distributed to all parties involved. Depending on how top artists approach music streaming platforms, they can earn 45% to 100% of their payments.

How much does the streaming platform pay for each stream?

Music listeners can use many platforms such as Apple Music, Spotify, YouTube Music and more. All top players dominate the market. However, according to Statista reports, streaming platforms that use a single stream are actually of little value.

There are big differences between services that compete for listeners’ money. For example, YouTube Music pays artists $ 0.074 per stream.

image: (Source).

There are many streaming platforms, ranging from global market giants such as Spotify and Tidal. All platforms have their own selling points, user base, and pricing model. Therefore, there is a great difference in the amount of revenue an artist earns per stream. Find out what payments the streaming platform pays to the contributing artists.

Spotify

The music streaming service Spotify has more than 406 million active users worldwide in the fourth quarter of 2021. It measures the growth of 60 million people in a year. However, music streaming platforms have a negative reputation for paying artists. Artists can earn about $ 0.0033 per stream.

image: (Source).

A union of Allied workers and musicians has launched a “justice” movement due to low payments to artists. It is very low, between $ 0.003 and $ 0.0084 per stream. This number may vary due to the difference between the importance of listening to premium subscribers on streaming platforms and the importance of listening to a large number of free users.

Territory also plays an important role. For example, a streamer has to pay $ 0.0039 in the US, while Portugal can pay $ 0.0018. In addition, each artist needs to reach about 250 streams on the track to earn $ 1 and more than 1000 streams to earn between $ 3 and $ 5.

Apple Music

With 78 million subscribers worldwide in 2021, it is the second most popular music streaming platform to compete with market leader Spotify. The number has jumped 6 million times from the previous year. The company has publicly commented that the average payment per stream is about $ 0.01.

image: (Source).

However, one tenth cent doesn’t seem to be that much. Apple is one of the most important per-stream payments compared to other music streaming platforms. Apple Music pays a stream of $ 0.0078 on the platform. It takes about 136 streams for an artist to earn $ 1 and 136,000 streams for an artist to earn $ 1000.

TIDAL

Tidal is not as popular as other music streaming platforms. Pay the artist about $ 0.12 per stream. However, TIDAL, founded by JAY-Z, seems to cater to those who have the knack for entertaining musicians and harmonies that are more fidelity than any other platform.

The platform boasts the highest streaming rates with an artist-focused model and high-value subscriptions for users.

The music streaming platform has begun exploring the UCPS model, which is the best alternative to the proportional distribution model. In addition, some consider it a fairer way to distribute income among artists.

It’s worth noting that few streaming services pay an average of $ 0.0128 per stream and about a cent per stream. Artists need 80 streams to earn $ 1 and about 80,000 streams to earn $ 1000.

Amazon music

Amazon Music is a popular music streaming platform with about 55 million subscribers. On average, music streaming platforms report paying artists about $ 0.004 per play on digital streaming platforms.

Amazon Music is a technology giant and a streaming service from the market. It offers a lot of streaming content, including the limited Prime Music services included in your Prime subscription. Artists need to earn about 249 streams to earn $ 1 and 249,000 streams to earn $ 1000.

YouTube music

YouTube Music, a subsidiary of the most popular music streaming platform, pays artists about $ 0.002 per stream. However, YouTube Music doesn’t spend much money on artists. Combining platform favors with advertising should result in slightly higher revenues in general.

Paying from YouTube ads is about $ 7-10 per 1,000 impressions. Not all views count as impressions. Approximately 30-40% of the platform views contain ads. Music videos require about 4,000 plays to earn $ 7 to $ 10.

Pandora

Launched as Internet radio, Pandora is the most famous of its services. As a music streaming platform, we pay artists about $ 0.0013 per play. The amount of payment related to the number of users is negligible.

Pandora had more than 55.14 million monthly active users in the United States in 2021. It is one of the well-known players in the streaming scene and is only available in the United States. This is why the user base is limited.

Ending note

This content may definitely help you know how many streaming platforms pay the artist for the artist’s work.

Artists need to choose something that rewards their work well, but they need to choose something that gives them full access to their favorite music and artists.

However, various variables affect streaming payments. The types of local streaming and the user market are outstanding.

Image credit: Provided by the author. thank you!