The Spotify streaming service is not only the leader of the global music market, but at the same time it is an effective tool for promoting artists and making money for them.
If the statistics say that music streaming services today account for almost 90% of the entire music industry’s revenue, then we begin to understand the importance of artists collaborating with these services.
The most attractive of them is Spotify. He owns up to 36% of the world music market, therefore, having got on Spotify with his music, the artist can expect to receive good royalties. Royalty is the profit that an artist receives from the use of his compositions by the streaming service. Throughout its existence, the Swedish green giant has paid over $16 billion in royalties to artists.
The platform’s tools allow musicians and their partners to track statistics on releases in real time, as well as to study their audience, grow their business and communicate with fans.
For label representatives, Spotify for Artists is a platform where all signers are gathered in one place. If the artist has administrator rights, then he will be able to independently track where, who and how listened to his compositions. In addition, he will be able to roughly calculate the amount of royalties that he can receive for playing his composition on the service.
An artist submits an application in advance, experts recommend submitting an official application for placing your song on the service at least two or three weeks before its release. This period will be required by the curators of the streaming service in order to evaluate the new track. They may or may not accept it. But if the track is accepted and suddenly gets into the editorial playlist of Spotify, then for the artist this means unimaginable success. It will not only be a lift in his career, but also a guaranteed income, because the song may well become viral.
Spotify for Artists is now a near-perfect tool for the interaction between an artist and a music streaming service. This is a collaboration based on mutual benefit and respect for the interests of each of the parties to cooperation.
The amount of royalties that will be paid to the artist cannot be calculated in advance. It all depends directly on how many times they will listen to his music – how many streams it will have. In addition, it is important in which country the track will be listened to, there will be more paid or free subscribers, and so on. Further, at the board meeting, the owners of the service will decide what percentage of the profits to allocate to pay the artists, that is, the payment of royalties. And now, as a result of all this, the artist will be able to receive the money he has earned.
The listening region of the track is very important. The fact is that Spotify does not cost the same price in different countries of the world. The general principle is this: the more developed the country is economically, the higher the price of the service. And for poor countries, minimum prices are set. For example, Spotify in India costs almost ten times less than it costs in the United States of America.