Why Is Spotify Paying Artists So Little?

The music market is now dominated by streaming. Most music users use at least one of the many streaming services available. The Swedish music streaming service Spotify is currently the most used.

Spotify, currently the world’s leading streaming service, pays around $0.0043 per stream on average, or in other words, around $4.3 per 1,000 streams (that’s about €3.8).

By comparison, Tidal, the streaming music service launched by rapper Jay-Z, pays the highest figures: it’s about $0.0125 per stream, going up to $12.5 for every 1,000 streams.

We know that Spotify is a major player for music streaming today. Assuming that an artist manages to reach 10,000 streams from a single single, we can say that his actual income will be $43. From this already small figure, you need to subtract the percentage for publishers: Spotify Premium does not give this figure completely to the artist, but divides it between him and the owner of the master and music publications in a percentage that is about 30% for the artist, and the remaining 70% – publications and record companies.

This 30% due to the artist is then divided in turn between the lyricists and the composers of the music, as well as the artists who performed the track. Of course, two factors must be taken into account: firstly, not everyone can reach such a large number of listeners; secondly, earnings are then divided among all professionals in the field of music, as well as taking into account taxes and other expenses.

The numbers only become relevant when one million song streams are reached, a figure taken as a starting point to start considering music as the sole economic source of the recorder’s livelihood.

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And that’s if you take into account listening through Spotify Premium: the scores from the free version are even lower. To see the numbers and possible earnings, it seems almost impossible to get compensation that allows us to actually earn money from streaming. In fact, once a million streams are reached, the numbers start to matter, reaching this milestone is incredibly difficult and almost impossible for an aspiring musician without a strong structure behind them.

On the other hand, with playlists, you can expand your reach and reach many potential listeners, while not forgetting how much streaming has now become necessary to be present on the global music scene. How to make more money with music? There is no magic and no simple formula. It depends on the artist’s creativity, intellect, in addition to his foresight, to think about how to approach the recording market, knowing his many inner realities, to diversify his offer in other areas, such as merchandising and the sale of record company media in physical format. to be able to earn income from as many platforms and opportunities as possible. So wake up your marketing genius and don’t just post your tracks on Spotify because the real money is somewhere else

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