The global streaming market is developing exponentially. Sometimes it is not always easy to navigate the mazes of the streaming music market, maximizing their revenues with the help of music streaming services.
In particular, the Swedish streaming service Spotify, which has paid more than $16 billion in royalties over the years of its existence, is considered one of the most popular music streaming platforms for earning royalties.
Currently, Spotify pays from $0.0026 to $0.0049 per stream. All this money goes to copyright holders. At the same time, the artist himself receives only about 13% of the income, and the rest goes to labels and publishers.
In the UK alone, the revenues of streaming music services exceed a billion pounds, but at the same time the performers and musicians themselves receive up to funny little.
The problem was known before, but the performers had live performances as the main source of income. The coronavirus pandemic that covered the world left performers one on one with their income from streaming music services, which was impossible to live on. You can also not recall the income from sales on physical media or on the Internet, they were destroyed by streaming music services.
Streaming music services live on money that subscribers pay, and they pay an average of $10 a month. While music is now listened to almost around the clock, which in itself makes serious adjustments to the business model of streaming services, because the more tracks the user listens to in a day, the more royalties will have to be paid.
But the royalty figure is not static, it largely depends on the total number of listenings on the streaming service, on its net profit, as well as on the percentage of net profit that streaming owners pay to performers. Profit, in turn, depends on the number of paid subscribers and advertising revenue. By the way, it is also important in which country the audition takes place. This is due to the fact that the cost of subscription to the service in different countries is noticeably different. For example, the monthly subscription fee in Russia is twice as low as in the United Kindom or the United States.
So let’s take stock. For one thousand strips you can get from 2.6 to 4.9 dollars. But, as already mentioned, the author receives only about 19% of this amount if he used the services of intermediaries – labels, record companies, and so on. The fewer links in the chain from author and performer to listener, the greater the profit from streaming can get the car and performer.