The rapid growth of the global market for music streaming services stimulates performers to earn money by receiving royalties from placing their compositions on these platforms.
The coronavirus pandemic dealt a serious blow to the music market as a whole. Before the pandemic, performances were the main source of income for musicians, but the epidemic made its adjustments. You can forget about the sale of music on physical media or on the Internet, since these methods are now completely destroyed by music streaming services.
When choosing a streaming service on which it is best to place their music for income, artists most often choose several of the most famous, among which two stand out: Apple Music and Spotify. The reason for such an active interest in them was the relatively high level of royalties that they pay musicians. For example, Spotify paid $16 billion in royalties to performers.
The level of payments between Apple Music and Spotify, which today are considered the most popular streaming services in the world, is slightly different. Currently, Spotify pays from $0.0026 to $0.0049 per stream. Apple Music pays about $0.0076. 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.
These two streaming music services are today leading in the global streaming market. Swedish streaming has many more users than the development of a corporation from California Cupertino. Well, Spotify has a free version that more than half of its users use. But Apple Music is distributed exclusively using a paid subscription.
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. Statistics indicate that a tenth of all artists represented on leading music streaming services receive a tenth of the profit provided for music and song rights holders. The result is clear – the more strips on the service, the greater the percentage of profits he will pay to a specific author.
Profits largely depend on the number of paid subscribers and on the funds received for advertising. The global average cost of paid subscriptions is about 10 US dollars, in countries, for example, Indochina or Africa, it is much lower.