Spotify Royalties Calculator (Updated for 2024)
This article has been updated to show 2024 royalty payment updates Spotify has made.
One of the hardest parts of the streaming era is knowing exactly how much money you get from your streams. It can even more difficult when you have multiple artists, splits or a label/distribution deal. It's easy to guess, but payouts from streams can vary on a wide scale. At Playlist Push, we created the most accurate stream calculator including splits that uses machine learning to help you get the most specific number for your streams possible. Our calculator is updated each week to help you better manage and predict your earnings per stream. Take advantage of the best royalty calculator out there.
Whether you are a producer, label, or distributor, knowing what earnings you have coming in via streaming income is crucial. When you are working with or as multiple writers, you must accurately sort your payment details and splits...and track them.
The Rise of the Streaming Economy
There’s no secret that it is becoming easier for artists to generate a living from Spotify. Our service, Playlist Push, sees more and more artists recoup their investment in promotion. Knowing how much you get paid for your streams is very important, especially when putting together budgets for production and promotional efforts. Below are a few key points you need to know about Spotify streams.
1) Spotify vs. Other DSP's
Spotify is by far the most important streaming service for new artists because the platform is a conduit for new music discovery and attaining a global fanbase. With features like Release Radar and other algorithm based playlists, there is plenty of digital real estate for new artists to cash in on.
Keep in mind there are many other streaming services that serve as income streams for artists. While not all of them have the large royalty payouts due to wider consumption its important to promote these other DSP's in appropriate regions.
Deezer Royalties Explained
For example if you are French you should focus on French based DSP Deezer. Deezer started using ACPS (Artist Centric Payment System) in 2023. ACPS aims to be fairer for artists, especially smaller ones.
- It prioritizes "professional artists" - those with at least 1,000 monthly streams and 500 unique listeners.
- Streams from professional artists receive a "double boost" in royalty calculations compared to non-professional artists.
- Additionally, active artist engagement (e.g., searching for an artist) further boosts the stream value, potentially doubling it again.
- This incentivizes user engagement with specific artists and potentially increases their income.
2. User-Centric Component:
- This element is still under development but aims to reward artists whose music listeners actively choose to engage with.
- It factors in user behavior like searching, adding to playlists, and following artists.
- The goal is to ensure artists who attract dedicated fans receive a larger share of their specific fans' streaming revenue.
- Deezer also has a strict provider policy. Deezer aims to limit low-quality content uploaded by non-artists, further focusing on music with higher artistic value.
YouTube Royalties Explained
YouTube Music, alongside its parent platform YouTube, offers a complex yet potentially lucrative landscape for artists. Navigating the royalty structure can feel like deciphering ancient runes, so let's break it down:
Two Main Revenue Streams:
- Ad-Supported Streams: When users listen to your music with ads on YouTube Music, the revenue generated is split according to a 55/45 share, with 55% going to the rights holders (artists, songwriters, etc.) and 45% to YouTube.
- Subscription Revenue: For YouTube Music Premium subscribers, a portion of their monthly fee flows to artists based on their stream share. This share is calculated based on how many times your music is streamed compared to all the music streamed on the platform in a given period.
Additional Income Sources:
- Content ID Monetization: If your music appears in user-generated content (UGC) on YouTube, you can claim it through Content ID and potentially earn royalties from ads displayed alongside that content. If you have a distributor that takes content ID seriously it can be a massive revenue stream for the artist.
- Premium Plus Revenue: A smaller share of revenue from YouTube Music Premium Plus (including downloads and background listening) also goes to artists.
Factors Affecting Your Payout:
- Territory: Royalty rates vary by country, with higher payouts typically in developed nations like the US and Canada.
- Distribution Deal: Your distribution deal might impact your share of the overall revenue pie.
- Songwriting vs. Recording Royalties: Just like other platforms, there's a split between songwriting and recording royalties, often 50/50 between songwriters and performers/producers.
Making the Most of YouTube Music Royalties:
- Optimize your channel: Build a strong YouTube presence with engaging content and consistent uploads.
- Focus on discoverability: Use tags, keywords, and playlists to ensure your music reaches the right audience.
- Track your royalties: Utilize YouTube's analytics tools to monitor your performance and optimize your strategy.
Remember: While YouTube Music's royalty structure can seem intricate, understanding the underlying principles empowers you to maximize your music's earning potential. So, keep creating, keep connecting, and keep unlocking the hidden riches of this digital music haven!
As of 2021, Spotify has paid over $23 billion in royalties to rights holders — including over $5 billion in 2020 alone, up from $3.3 billion in 2017."– Spotify Loud & Clear.
2) Why do payouts for Spotify streams vary?
How much you get paid per Spotify stream can vary on a wide scale. Why is this? There are multiple factors that contribute to how much you get paid per 1,000 streams on Spotify.
- Spotify works off of a stream share model. They tally up your total monthly streams vs. the total eligible streams in each region. More info on that directly from Spotify here:
2. Are the plays coming from a premium account or freemium accounts? Free or ad supported streams payout less than streams coming from Spotify premium accounts.
3. Are the plays coming from lower GDP countries that are paying less for Spotify premium? For example Indonesia and Mexico pay much less per stream compared to countries like Sweden and The Netherlands.If the streams are coming from free accounts, how many ads are being sold against those free accounts? For example, streams in December (peak shopping season) would pay more than streams in February.
It is important to note that royalty structures change rapidly in the music business, no monthly payout is the same and DSP's are constantly changing how they calculate royalties for artists. Just take a look at what you needed to earn $1 from streaming services in 2016.
How many streams does it take to earn $1? Take a look.... #musicindustry #demodrop #musicproducers pic.twitter.com/JSxdECUz7x
— Demo Drop (@DemoDrop) September 17, 2016
3) Why does the "per stream rate" for Spotify seem lower than other similar services?
You may have seen charts like this where other services seem to payout more per stream than Spotify. Not so fast, as there are a few key factors that are not accounted for and charts like these can be very misleading.
While some services may payout more, Spotify has a much larger audience of listeners. It is much easier to get 10,000 streams on Spotify than it is on Tidal.
Spotify has higher streams per listener in comparison to all of these services. There are more people using Spotify, therefore an average Spotify user could contribute 10 hours of streaming per week, and a Tidal user only 2 hours.
Spotify also has a more global audience than other services. They are in countries that have fast growing GDP's like India that make it exciting for new artists to branch out to new territories. More countries to hear your music equals more potential streams for your music.
Freemium or ad-supported tier...not all services have a free version of their platform. Spotify does, so their payout per play can seem lower because those streams are coming from free accounts and are based off of ad-supported revenue. How cool is it that even people who can't afford to pay for a streaming service can still support your art and contribute to your growth?
How much does Spotify pay per million streams?
On average Spotify pays on average $2,500 USD per 1 million streams. We use the lowest paying countries and the highest paying countries to find the average payout. Most artists will have a blend of listeners from different countries so there will always be a slight differentiation.
How Many Spotify Plays Does it Take to Earn $100?
Have you ever wondered how many plays on Spotify it would take to pocket $100? Let's delve into the calculations using some estimates to demystify this aspect of the music streaming world.
An artist would need approximately 25,000 plays on Spotify to reach the coveted $100 mark. Assuming most of their stream are coming from Europe or North America. It's a numbers game that unveils the relationship between streams and earnings, providing insight into the threshold for artists looking to monetize their music on the platform. You can use the calculator above to help you find this number as well.
Understanding the dynamics of Spotify payouts is crucial for artists navigating the digital music landscape. While these estimates offer a baseline, it's essential to acknowledge that actual payouts may vary due to factors such as subscription types, geographic location, and changes in the streaming industry.
How much does Spotify pay per billion streams?
The amount that Spotify pays for streams is generally between $0.006 and $0.0084 per stream. This can make payout on large numbers of streams vary on a wide scale. An artist could potentially earn between $6 million and $8.4 million for 1 billion streams on Spotify. However, it is important to note that these amounts can vary widely depending on a number of factors, including the artist's label deal, the country where the streams occurred, and if the streams are coming from premium or free accounts.
How Many Streams on Spotify To Make A Dollar?
The amount of streams to generate one dollar on Spotify is 250-500 streams. Amount of streams can vary based on your label deal and which countries the streams are coming from. The countries that pay the most per streams are Iceland, Norway and Monaco.
How much does Drake make from Spotify?
Drake has surpassed 50 billion streams on Spotify earning him over 220 million in royalties.
Complexity of streaming royalties and calculations
Its important to note that there is a ton more to how you get paid for your music. This goes well beyond just streaming services. See examples below:
Deductions:
- Platform Fees: Streaming services take a cut, typically 30-35% of the total revenue generated by your streams.Think of it as rent for the digital real estate they provide.
- Administrative Costs: Distributors and aggregators, who get your music onto these platforms, may deduct processing fees or a percentage of your royalties. They handle the logistics, so their slice ensures things run smoothly.
- Local Taxes: Depending on your location and the platform's tax policies, a portion of your royalties might go towards local taxes. It's always best to check your local tax regulations.
- Using Spotify Discover mode: If you are using discover mode you will get more streams from Spotify boosting you onto radio and additional discovery features. Keep in mind you earn a drastically lower payout per streams in exchange for them promoting you. Learn more here: https://artists.spotify.com/en/discovery-mode
Splits:
- Songwriting vs. Recording Royalties: A song has two sets of royalties: songwriting (who wrote it) and recording (who performed and produced it). As an indie artist, you likely own both, but if you collaborated, splits come into play. A fair 50/50 split is common, but agreements can vary.
- Publishing vs. Master Rights: Your song has "publishing" rights (ownership of the composition) and "master" rights (ownership of the specific recording). If you signed a publishing deal, a portion of your songwriting royalties might go to your publisher.
Mechanical Licenses:
- Covers and Samples: If you cover someone else's song or use a sample, you need a mechanical license to legally do so. This involves a one-time payment to the song's copyright holder, deducted from your royalties before you receive them.
Understanding these complexities empowers you to navigate the music industry and maximize your potential earnings. Remember:
- Negotiate splits and contracts carefully.
- Track your royalties through artist dashboards offered by platforms and distributors.
- Educate yourself on industry practices to make informed decisions about your music career.
Knowledge Hub:
If you want to learn more about Music Royalties in general and how they work in your region check out the following resources:
UK: https://www.ppluk.com/royalties-explained/
USA:
The Netherlands: https://bumastemra.nl/en/buma-stemra-global/from-play-to-pay/
Don't gamble with your music's global impact.
While budget-friendly Spotify promotion might hold initial appeal, the ROI can be as flat as a poorly mastered track. Cheap services often prioritize streams from regions with significantly lower payout rates, leaving you with mere digital dimes for your artistic dollars.
Instead, invest in a premium service like Playlist Push. We leverage targeted campaigns that place your music before engaged audiences in high-revenue territories like North America and Scandinavia. Imagine the sonic satisfaction of streams that jingle like silver coins rather than rusty pennies.
Don't settle for a global audience that mutes your financial potential. Choose Playlist Push and amplify your artistic reach to where the royalties truly rock.
Playlist Push campaigns have a long tail with steady carry-over that can keep you consistently growing and achieving new audiences for the long haul. It is not uncommon for our clients to ascend over 1,000,000 streams on songs with properly run campaigns, regardless of label, or publishing. Apply below today and let’s get you to your first million streams and beyond.
