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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.
You might have seen a popular metric that suggests artists make, on average, somewhere between $0.003 and $0.005 per stream. But because streaming platforms don't pay artists directly, that number isn't exactly accurate. “This concept of the per stream rate is one of the most misunderstood aspects of the music industry,” says Hellman.
Recording artist royalties are a vital part of an artist's income and are gained through the digital and retail sale of their music along with the use of their music in streaming services, broadcasting, and in other forms of media such as TV shows and films.
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 ...
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.
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