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How does Spotify pay artists and songwriters? Short answer: They don't. Spotify pays roughly two-thirds of each dollar it makes from music streams — a collection of paid subscriptions and ...
Spotify, a music streaming company, has attracted significant criticism since its 2008 launch, [1] mainly over artist compensation. Unlike physical sales or downloads, which pay artists a fixed price per song or album sold, Spotify pays royalties based on the artist's "market share"—the number of streams for their songs as a proportion of total songs streamed on the service.
If an artist is self-distributed, they might pay a small fee to an aggregator, or upload service (some popular ones include DistroKid and TuneCore). A self-distributed artist keeps “the vast majority of (the royalties),” explains Charlie Hellman, the vice president and global head of music product at Spotify.
Unlike physical or download sales, which pay a fixed price per song or album, Spotify pays artists based on their "market share" (the number of streams for their songs as a proportion of total songs streamed on the service). [31] Spotify distributes approximately 70% to rights-holders, who will then pay artists based on their agreements.
Spotify generally pays between $.003 and $.005 per stream, but how much you'll be paid differs based on your distribution contract.
Spotify for Artists states that the company does not have a fixed per-play rate; instead, it considers factors such as the user's home country and the individual artist's royalty rate. Rights holders received an average per-play payout between $.000029 and $.0084. [172] In 2013, Spotify revealed that it paid artists an average of $0.007 per stream.
Following on the news that the music industry generated some $9 billion on Spotify in 2023, the streaming giant has revealed that half of that total went to independent labels and artists — $4.5 ...
Both services pay rights-holders based on the share of total streams that their artists bring in. Apple says in the letter that it pays 52% of its subscription revenue to record labels; Spotify ...