If you are a singer, is very important to have the idea of how streaming services payout. Spotify in this recent years have been tackled over there low streaming payouts rates to there platform users.
Let find out how bad there payout is!
How much do one of the best streaming platforms Spotify pays per 1 million streams
The streaming (Spotify) pays around $0.001 and around $0.008 per stream to the artist, which simply means if your song is streamed 1 million times on the platform you as an artist will be expecting around $1,000 and $8,000.
Spotify also pays you regional, like example if your song is been played by the USA you will earn estimated amount of $0.004 then earn $4,000 for 1 Million Streams if your song is listened at least 30 seconds which is $25 dollars per an hour.
Also the platform pays per monthly listeners which depends on several factors, including the country where you are getting most of your streams from and the listeners type of subscriptions.
In spotify platform free users with no subscription will generate less revenue to the artist to compare the paid subscription, and the country that have the highest pay per stream rate is south Koreans as there stream rate is $0.017.
Spotify payout guides to there users.
This aspect will teach you the average pay per stream rate and how Spotify compare to other streaming platforms.
1. Spotify users get paid less than a cent per a stream.
In Spotify an artist receives between $0.001 and $0.008 pay a stream which means an artist can earn around $1,000 and $8,000 for 1 Million music streams.
Most of the money Spotify makes like 70% ends up in the hands of Copyright holders in the platform. Just the same way the most money made by an artist first goes to the record label that signed you, then the distributors, and only then that the artist will see his pay from his music gain.
2. In Spotify 250 streams generate $1 dollar: This simply means that if you wish to make up to $1,000 in Spotify platform you literally need 250,000 streams, and they pays an artist $4.00 per 1,000 song streams
3. South Korea is the country is one of the highest pay per stream rate in Spotify, with sum of $0.017: Every country has it own paying rates in spotify platform, and that is why if you are from USA you can be expecting $0.004 per 1 stream, in Turkey you expect the least from the platform. Why South Koreans make more money is that there is no free subscription options (only premium subscriptions) which means as an artist over there you can make a lot of money from the platform with rate of $0.017 per stream and $17,860 in a million streams.
4. The payout streams per 1 stream in United Kingdom is at the rate of $0.0058: European account is one of the highest country with the pay per a stream with the rate of $0.058 because they have 40% active Spotify listeners, so is definitely no surprise that the UK has the second highest pay per stream rate followed by Denmark and then Iceland.
Spotify pays about $5,821 per 1 million Spotify streams in UK account.
5. Revenue from premium subscribers is about $4.81,which is the average earnings in the platform from premium subscribers: Spotify is recorded to have over 180 million premium subscribers worldwide as of last year, they don’t contribute to the royalty pool with advertising companies but only from there subscribers unlike audiomack make most of there revenue from Google adsense.
In USA, they subscribe about $9.99 almost $10 dollars per month, whereas other countries like India membership is about $1.99 per month.
The platform pays artist through the premium subscribers the global ARPU around $4.81.
6. The streaming income from free Spotify users comes through the ads. This also determines the country the users is listening your song from, because if the user is from a wealthy country like USA, Japan and UK the ads must pay more for there free users streams because they generate more sales than other countries. Also numbers of the ads determines how much the money the artist makes from his songs per stream.
In the music industry there is other streaming platforms like Tidal, Deezer, Apple and Amazon music
Let compare them with Spotify :
Spotify vs Tidal, Apple, Amazon music, Deezer.
7. Spotify pays lower than Tidal:
Spotify pays artist at the rate of $0.004 per stream, while Jay-Z Tidal offers the highest payout rates of about $0.001 per stream but when it comes to a million streams Tidal pays about $12,840, which is way better than Spotify that pays around $4,000 to $7,000 per 1 million streams.
8. The second streaming platform is Deezer who pays the least money per a stream: The streaming platform pays around $0.0011, 1 million streams pays an artist about $1,100,but paying subscribers to support the artist directly. For example if a user listens to only one artist per a month on Deezer the artist will receive all of there subscription money, removing the platform charges.
9. Is now about Apple Music and there pay to the artists using there platform: The streaming platform pays about $7,830 for a million streams. Apple Music is a music streaming platform created by Apple Inc. and they pays artists per as stream and there rate is about $0.0078 but if you want $1.00 per a stream you song must be streamed like 128 times.
In Apple music streaming platform the average of $0.58 for each dollar you make on Apple Music and the remaining amount is dived by between Apples commission(28.5cents) technology, mechanicals, production, and performances rights (13.5cents).
10. Amazon is also a streaming platform with a similar pay per stream like that of Spotify :
Spotify platform pays per stream is about the rate of $0.001 and $0.008 and the average payment is around $0.004 per stream.
Amazon music is more in aspect of pay per stream with the rate of between $0.007 and $0.01,and the average laying on $0.004 per stream.
Amazon streaming platform has level unlike Spotify that have only 2 free users and premium subscribers, Amazon have five distinct levels of listening options : the unlimited version, high definition audio version, Amazon prime members, individual subscriptions and family subscriptions, offering you ways to make more money via Amazon
Conclusion
Determining how much the Spotify streaming platform is paying per stream is very hard because of different factors that the platform uphold like that of location, the type of subscription plan your listeners is subscribed to and how often they play the track
Spotify can pay an artist and estimated amount of $1,000 and $8,000 for an a million streams on Spotify, but it’s is more likely they will earn about $4,000.
