Musicians worldwide aim to reach as many audiences as they can. Apart from being a monetary concern, it is a genuine urge for any creator to see others adorning their creation. However, now musicians get paid for their music whenever a listener streams it. Thanks to various streaming platforms. Spotify is one such platform, and with its popularity in multiple countries, many singers and record producers are willing to be a part of it. If you are one of them, you should know the basic ideas of the Spotify pay-per-stream concept before getting into it.
How much does Spotify Pay?
Like many other algorithms, Spotify’s pay-per-stream is also a secret. However, the musician knows about the approximate amount. The stream calculators help in this regard. Spotify pays the artist per-stream basis, and whenever a listener streams a song, the artist receives a small fee as royalty. The platform generally grants a royalty of around $0.003 and $0.005 per stream to the copyright holders, but certain factors influence Spotify’s earnings per stream. The artist gets 70 percent of the earned revenue while the company keeps the rest. A music-maker can generate around $3300 to $3500 per one million streams.
What are the factors that influence the Spotify pay-per-stream?
The platform is not transparent about its payment policies. Multiple factors influence the royalty that Spotify gives its artists. One of the crucial factors that play a critical role in Spotify earnings per stream is the artist’s contract with Spotify. Other than that, the nature of the listener base is also considered in the calculation. The geographical location of the listener decides how much the Spotify pay-per-stream value would be. According to an article published by music distributor iGroove, US fans pay $0.0035 per stream while Italian listeners pay $0.0019. At the same time, the premium account holders contribute more to the payment of the artist than the free-tier holders.
How does the artist get paid?
Spotify is one of the largest online music streaming platforms with giant competitors like iTunes, Shazam, Google Play Music, etcetera. With their music delivering quality and brand awareness, they have become a significant internationally recognized brand with a growing user base of 406 million. With about a decade of experience, they have successfully become a platform where many well-known artists release their music. There can be a question regarding how the artists get paid, especially when you are interested in joining the streaming platform in the future?
Spotify generates its royalty from the subscription fee of premium accounts and advertisements.
Spotify pays its artists monthly, tallying each artist’s total number of streams. Spotify pays the right holders of the music and distributors. As an independent musician, you can contact platforms like Deliver My Tune, one of the best music distribution service providers, which allows you to share their music on online music streaming platforms like Spotify. They can reach a massive audience and receive payment based on Spotify earnings per stream.
Some of the problems faced by artists on Spotify:
In recent years, Spotify has received several criticisms concerning multiple factors, and it went to the extent that many musicians have threatened to remove their works from the platform. There are several concerns that an artist may find looming upon them when they join Spotify to share their work with the listeners, and one of them is copyright infringement. Many songwriters also called out the platforms for raising the pay of the music makers. Spotify’s pay-per-stream rate has also decreased compared to their previous years. However, the platform still enjoys the confidence of many artists who regularly release their music on Spotify.
Spotify is yet to catch up to some of the biggest music markets worldwide. Although, it is available in many countries. While many artists fear copyright infringement and decide to stay away from the online streaming platforms, many others do not try to be a part of it because of its limitations. Besides countries like America and Japan, South Korea and China have big music markets. The K-pop industry has experienced a surge in popularity after Spotify was introduced in Korea a year ago. Thus, giving a fair chance for independent and solo musicians to share their work with the rest of the world. However, China is yet to see Spotify boom in their land.
What to do to increase the Income on Spotify?
Since Spotify is a global medium and many countries have the service available, the musicians get a broader chance to reach their target listeners. Though the royalty payment given to the artist by the platform is significantly lower, you can make good money with the help of the Spotify pay-per-stream system. There are occasions when an artist may see fluctuations of income generated based on Spotify pay-per-stream. Since the revenue generated from ads change due to location and time, the payouts of the artists also vary.
The geographical location of the listeners may impact the Spotify pay-per-stream system or the nature of the account they hold. The simple idea is to increase the number of streams. You can do this by strengthening the fan base; the singer can release music consistently to get more streams and garner a fanbase at the same time.
Although, the famous musicians also enjoy a high streaming rate with their songs released once or twice a year. Hence, the key to increasing the income is to get a good number of streams. The platform allows the artists to reach more listeners. Spotify has also come up with its playlist submission tool, which allows the creator to submit their unreleased works on Spotify and include them in their playlists. If a song gets to a popular playlist, you may have chances of sharing and streaming increases. The platform also takes note of the genre, theme, and style of music for putting them in their algorithmic playlist, which makes it more prone to reach the correct listeners. Getting a verified account, building a robust online presence, and being consistent with your music will increase the number of streams. The Spotify pay-per-stream system can reflect some changes in your income over time. If you want to avoid worrying about issues like copyright infringement, join Deliver My Tune and get your music streamed on platforms like Spotify, Amazon, Google Play, and JioSaavn.