The world of music streaming in just a couple of years has made a huge jump in its development. The reason for this was not only the successful technical development of music streaming services, but also the world pandemic of coronavirus, which forced music industry figures to transfer their efforts to the Internet. Unfortunately, the music industry around the world suffered enormous losses due to the fact that the restrictions associated with the coronavirus pandemic excluded the possibility of holding live concerts. But it was concerts that were the main source of income for musicians. And today, many of them receive significant income from placing their works on music streaming services, receiving royalties from them.
Swedish music streaming service Spotify is a leader in the global music streaming market. Today, it can be proud to have more than 350 million users worldwide, of which more than half are its paid subscribers. Therefore, it is Spotify at the moment that is most interesting for music industry figures who decided to earn money on streaming music.
According to information from Spotify owners, to date, the service has paid more than $16 billion in royalties. Given that the service is available in almost 200 countries, this is not surprising. However, representatives of the site said that in the future the number of such artists will increase, and podcasters will also join them.
The service launched a new program Spotify for Artists, which is designed for musicians who decided to distribute their music using the Swedish streaming music service.
Spotify royalties are specifically distributed from net advertising revenue and Premium subscription revenue. Executors receive payments monthly. When the service calculates payments to artists, it calculates the total quantity of streams for each song of the artist and determines who owns each song and who distributes it.
But the level of payments is subject to fluctuations that depend on:
• total net income of the music streaming platform;
• agreed global interest on total net income payments to executors;
• total number of auditions on the service;
• the number of listenings to the content of a certain performer claiming royalties.
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.
You can place your music or song on the service by concluding an agreement with him on music distribution, which implies not only the distribution of audio content, but also copyright, as well as regular payments to the author of the composition or album of royalties.
Of course, 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. But this is better than in the pre-streaming period, when the performers could not earn anything at all.