The Swedish music streaming service Spotify not only allows you to listen to streaming music, but also make money from it. Otifi owns today more than 36% of the global music market, this platform is of great interest to artists as an opportunity to earn money. The streaming service pays artists royalties, which are often very significant.
The Spotify platform offers users to listen to different tracks. She collects playlists from popular songs and preferences and gives precise recommendations – songs that are highly likely to be liked by a person. The service is monetized in two ways:
• advertising — it is seen and heard by everyone who uses the free version of the product;
• paid subscription – it disables ads and provides other benefits.
The platform shares revenue from paid subscriptions and advertising with content authors – it deducts about 70% of its earnings to them. The approximate amount that Spotify pays for one listening in the US is $0.00348.
Spotify revenue varies and depends on how much a subscription costs in a particular region and how much advertisers are willing to pay for promotion in it. For example, a subscription in India is cheaper than in the US, so one listen from a user in India pays less. The artist’s monthly income depends on which users listen to your compositions and how many listens there were. For example, Spotify pays about $3,480 for 1 million plays in the US.
Spotify itself published the Loud & Clear website, which talks about the economy of the platform, and invited songwriters to focus on average prices. According to the platform’s internal statistics, there are more than 67,000 performers on the platform, earning more than $5,000. The number of auditions was not disclosed. According to the same statistics, there are very few people who earn more than $1 million annually on Spotify – only 870 people.
Beginning performers are better off aiming for the lower bar – about $ 5,000 per year or even less. To receive such an amount, you need playlists with your compositions to be popular. This process can be helped and accelerated.
It will not work to wind up listening – Spotify has protection against such fraud schemes. Therefore, it will be possible to promote a composition there only if it is really good. Strong pieces can shoot on their own, but you can help them a little.
Create an artist profile. This is important for two reasons. The first is how you tell the platform algorithms that you will seriously work on the content. The second is that the chance of a subscription increases if a person sees a completed rather than an empty profile. Pay attention to it: post beautiful photos, make a description, upload covers for each album.
Leave a link to Spotify on social networks. And not only in social networks, but on any platform on which you promote tracks. This way you will get subscribers inside Spotify, and the more subscribers you have, the more often the service will recommend your compositions to the right audience.
Make releases. This will help to add the track to different playlists. Make a release on the platform at least 4 weeks before the official one – and the editors can listen to the composition and add it to thematic collections. To do this, upload the track, wait until it appears in your personal account, and send it to the promo via the Pitch a Song button.