In 2020, the music world and almost the entire music industry suffered huge financial losses due to the restrictions associated with the pandemic. This year, the situation is not a little better. Live concerts served as the main source of profit for artists, in the vast majority of countries are prohibited. Therefore, many artists switched to forced earnings on music streaming services. If you are one of them, then this one will remain for you.
Today there are many streaming music services for listeners with your music, both paid and free. Traditionally, the path to a larger audience has run through record companies. They are responsible for everything related to the release of the album or single, including the cover, advertising and press materials, contacts with radio and media, and not least for quality. But the most difficult thing they took care of was the necessary at that time and rather complex logistics of the physical album. The album will be delivered to record stores around the country or maybe all over the world, it will be available on the same day, go on sale. One person with such a task simply cannot cope.
But then the Internet appeared – and with it the infrastructure for completely free distribution of digital files, ideal for music. Sales of physical records still exist (and vinyl is even growing), but the paradigm shift towards digital distribution has opened a completely new market for digital distribution companies that collect music in digital stores, the largest of which is Spotify.
Artists and producers can now publish their own music in online stores along with images and metadata through the distributor’s website. This eliminates the need for a record company to distribute, and thus artists have greater control over their own production and musical works.
This payment is made with the royalty statement, the frequency of which varies, but they are usually paid once a month or quarter. The statement clearly indicates the number of listenings and purchases from which country they were made, as well as the amount of compensation for them. Some distributors also offer more statistics, such as age and sex of your listeners. Spotify itself also offers a free service for artists to get current statistics – Spotify Fan Insights.
It usually takes about a week before the release arrives in stores from the moment of payment and printout until publication. Therefore, if you set a specific release date and are going to party about the release, or know that your music will be checked somewhere on a specific date, it is recommended to download music a month in advance and set a release date. Spotifai provides this function in its services.
If you have a release party – make sure everyone who comes, listens to the song and gladly puts the release on their own playlist – this increases the chances of being noticed and getting into their own Spotify playlists, for example.
Any performer will face the variability of their income on Spotify, as well as on any other streaming music service. Also, the level of income will depend on who and, which is important, where exactly listens to your compositions.
It is hardly worth considering royalties from Spotify as the main source of earnings for performers. Rather, this will be an additional income, which, however, will also not interfere.