Understanding Music Streaming Royalties: How Artists Get Paid Per Stream
As a
musician, one of the most important things to understand is how you get paid
for your music. With the rise of music streaming services, the way in which
artists earn royalties has changed dramatically. In this post, we'll take a
closer look at the system of "pro rata" or "per-stream"
royalties and how it works.
The first
thing to understand is that music streaming services generate revenue through
subscriptions and advertisements. This revenue is then distributed to rights
holders, which include the record label and the artist. The amount that an
artist earns is based on the number of streams of their songs. This is where
the term "per-stream" royalties comes in.
So, how
much do artists actually earn per stream? The answer is that it can vary
depending on the service. Some services pay as little as a fraction of a penny
per stream, while others pay a few cents. Here are a few examples of per-stream
payouts from popular streaming services:
· - Spotify:
$0.00437 per stream
· - Apple
Music: $0.00735 per stream
· -Tidal:
$0.01284 per stream
It's
important to note that these numbers are just estimates and can change over
time. Additionally, the payouts listed above are before any additional deductions
such as taxes, record label cut, and other expenses.
It's also
worth noting that these payouts are for individual streams. So, if an artist's
song is streamed 100,000 times, they would earn $437 on Spotify, $735 on Apple
Music, and $12,840 on Tidal. While these numbers may seem low, they can add up
quickly for popular artists with a large fan base.
It's also
important to remember that these payouts are just one part of an artist's
income. Musicians also earn money from live performances, merchandise sales,
and other revenue streams. Additionally, many artists have begun to diversify
their income by releasing music independently or through their own record
label.
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