Streaming has changed the music industry. Gone are the days of buying CDs or cassettes, for many people, but what about streaming? Is it worth it to stream 1 million times on Spotify? The answer is there are 4370 reasons to say yes! At $0.00437 per stream, the artist would be multiplying $0,00437 by 1,000,000 to learn that one million streams should earn them $4370.
One major factor that should be considered is the number of times a song has been streamed. For example, if an artist streams their music 5 million times then the per stream rate drops to $0.00174!
Another issue worth noting is that some services have royalty rates for certain regions which may result in different payouts.
Besides that, consider whether the artists are getting more money back in terms of PR, too. Getting recognised on Spotify will lead to more singles being sold by fans as well as invites to other events and mentions in the press plus people discovering news singles will talk among themselves and encourage others to buy. You could (and probably should) also see this as financial compensation. But how do you calculate that?
The simple answer is, Spotify is among the top paying services out there, bested only by the likes of Google Play. The long answer is, there is a lot more coming back to the artist in terms of financial rewards than just the payouts themselves.
In any case, MusConv is always here for you if you want to know more or decide you want to switch over to another equally or more impressive music streaming platform. Ciao!