Broadly speaking, streaming means live broadcasting on the Internet. Probably, in the modern world, streaming would not be so popular if it could not bring the streamer not only fame, but also good income.
Today, the global music industry is gradually reorienting itself to streaming services, as the number of live performances by musicians has dropped critically, and the trade of music on physical media is a thing of the past.
The reason for such an active interest in them is the relatively high level of royalties they pay musicians. For example, Spotify paid artists $ 16 billion in royalties.
But the royalty figure is not static, it largely depends on the total number of streaming service listens, on its net profit, as well as on the percentage of net profit that streaming owners pay to the performers.
The profit depends largely on the number of paid subscribers and on the funds received for advertising. The global average for a paid subscription is around $ 10.
If you use the services of an intermediary when placing a song on a streaming service, then the amount received on hand will be much less.
The amount of royalties is also significantly influenced by the service’s advertising revenue.
On average, the service pays the performers who posted their compositions on it, about 70% of the profits. The amount also depends on whether listening to the composition was paid or free users listened to it.
Since royalties are not static, an artist will receive between $ 140 and $ 800 in royalties for 100,000 streams on Spotify. On average, this amount of streams usually brings the author $ 400-700.
Of course, the profit from placing music on streaming services will not be able to surpass the profit from the performances, but it can well be considered as additional income, which is especially important in a pandemic.