How Much Are Spotify Streams Really Worth?

To state the obvious, streaming rules the game these days. So much so that many artists are making the choice to release digital-only music, rather than producing physical copies of their records. Here at OMM, we doubt that vinyl sales will ever go out of style seeing as it's a classic art. But, we respect those folks who are trying to make it digital-only. In this article we'll outline all of the nitty gritty details that you should be aware of if you're an artist delivering your music to streaming services.

The Research 

According to a study done by Digital Music News, the amount of money paid to artists for streaming music on Spotify depends on several factors. Each stream earns between 0.005 and $0.0084 per play. The exact amount is determined by the user's subscription type - free users earn lower royalties than premium subscribers - and the country where the user is located.

For example, a play from a premium user in the United States earns $0.0074 per stream, while a play from a free user in France earns only $0.0048 per stream. This means that if an artist had one million streams across all countries and subscription types, they could expect to earn anywhere from $5,000 to $8,400. This number is an estimate of what should be expected to be paid out to the artist (either via the label or the distributor) on the side of the song recording. You can expect to earn even less on the writer and publishing shares. This is just the nature of the beast. 

Royalty Splits

The amount Spotify pays an artist also depends on the type of music they make and how their recordings are licensed. A record label or distributor that has a direct agreement with Spotify will typically take a cut of the revenue earned by their artists. To maximize their earnings, independent artists should look into working with a distributor that offers the most generous royalty splits. A 90/10 split is probably the best you're going to get and luckily for you, that is what we offer here at Organic Music Marketing! Get in touch today to see how we can help you start collecting the money you're due. 

Diversifying Your Reach

It's important to remember that streaming music on Spotify is only one source of income for artists. You can also make money from live shows, merchandise sales, sync licensing and fan contributions through platforms like Patreon or Bandcamp, to give you a few ideas. So while royalties from streaming services can be low, it doesn't mean that artists can't make a living from their craft. With the right combination of marketing, promotion, and financial planning, it is possible for talented musicians to earn a good income from their work.

Have you been searching for someone to help you with marketing your song? You’ve come to the right place! Organic Music Marketing offers a wide range of marketing and promotion services for your next song release including packages for Spotify, YouTube, Instagram, TikTok, and more! Click for more information.