How Does Spotify Pay Artists?

In 2022, more than 80% of the profits of the entire music industry were generated by music streaming services. Some market analysts believe that this figure is even close to 90%. This means that every nine out of ten dollars of the income of the entire huge music industry in the world was received from music streaming. Probably, ten years ago, no one could have imagined such a state of affairs in their wildest fantasies.

The Spotify streaming service has become one of the most interesting platforms for artists to earn good money with. And this is not surprising, because the Swedish streaming service has a huge number of subscribers, which is the largest among all music streaming services in the world. Today their number exceeds 380 million people on all continents of the planet.

Of this huge number, more than half of the users have a paid subscription. Therefore, posting your own compositions is very interesting for any artist who intends to interact with Spotify in the direction of developing their musical career.

But Sotifi works with artists through labels. He also has his own Spotify label for Artists, which has a certain priority. To place your track on a Swedish streaming service, you need to submit an official application with a detailed indication of the name of the song, its author, a brief description of the content, and possibly writing a story about the creation of the composition. The more detailed the tags are, the more likely the Swedish streaming service’s music curators will make a positive decision.

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The application should be submitted at least two or three weeks before the official release date. This time will be quite enough for the music editors to consider the application and make their decision.

If an artist’s song ends up on a curated playlist or an editorial playlist on a service, then it can be considered just a huge success. There is a high probability that this song will become viral in the near future and, of course, will bring huge income to its creator.

Almost every artist is concerned with the question of how much royalty he will receive in the end. It would seem that there is an average amount of Spotify payouts per stream. But this amount is not static. It largely depends on the following factors: how many times the song was played on music streaming, in which countries it happened, what category of listeners prevailed – free users or paid subscribers, and so on. Of decisive importance is the decision of the founders of the service on the percentage of royalties paid by the artist. They meet quarterly and decide on the exact percentage of profits to be paid to authors and performers of musical works. This percentage is not constant, it depends on many factors, including the current global economic situation, as well as the total profit of the music streaming platform for a given period.

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