Spotify Streams To Money

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Spotify is a digital music service that gives you access to millions of songs. We and our partners use cookies to personalize your experience, to show you ads based on your interests, and for measurement and analytics purposes. By using our website and our services. Spotify has two main streams of income: ad revenue and subscriptions. With about 200 million subscribers worldwide, it’s reported that over 90 percent of Spotify’s revenue comes from its Premium subscriptions. The remaining is money from advertisements. Calculate your royalties from digital streaming across Spotify, Apple Music and Tidal. Sign up for regular free resources, updates and more. Whether you're trying to figure out how much money Spotify pays artists per stream or which service pays the most, it's important to have up-to-date info on your streaming royalties. Use our free streaming royalty calculator for Spotify, Apple Music, TIDAL, Amazon, Pandora, YouTube, SoundCloud, Napster, Deezer, & Google Play Music. Basically, if your song gets 10,000 streams, Spotify needs to compensate you for that. Even if they are fake! If your distributor keeps sending Spotify artists that are racking up fake streams and costing the company money, that looks bad. So, on both Spotify’s end and on the distributor’s end, they don’t want you faking those streams.

If you don’t have a publishing administrator working on your behalf, the answer is probably NO.

In many cases, for every $100 your sound recording has generated on Spotify, there could be another $15 owed to you in (uncollected) mechanical royalties. That’s YOUR money just sitting there.

But this isn’t Spotify’s fault. It’s simply — or not so simply — one of those weird things about how traditional music publishing works (or doesn’t) for indie artists.

Here’s the good news: CD Baby Pro has a simple solution to this problem.

But first, which monies have you been missing out on?

Three ways you can make money through Spotify

1. The regular ‘ole payment for the stream —

Some people call this a “master use royalty.” Others call it the “artist royalty.”

Technically, it’s the payment for streaming your licensed sound recording.

If you’re distributing your music through CD Baby, it’s the money you’re paid by Spotify each time your music is streamed. You’ll see a complete report of streams and payments in the accounting section of your CD Baby member’s account.

2. Mechanical royalties —

Streaming services like Spotify and Apple Music owe you a mechanical royalty every time music you’ve written is streamed.

With Spotify, those mechanical royalties aren’t paid directly to independent songwriters, but (in the US) to the Harry Fox Agency, or HFA. If you have a lot of plays on Spotify, those royalties are adding up AND going uncollected unless you have a publishing administrator working on your behalf.

Spotify Streams To Money

With CD Baby Pro, we’ll act as your publishing administrator and make sure you get paid all the publishing royalties you’re owed — both mechanical royalties for global streams and international downloads, as well as performance royalties for the usage of your music on radio, TV, films, in live venues, etc.

Streams

For more info about what mechanical royalties are, click HERE.

Does spotify pay you for streams

3. Performance royalties —

If you’re registered as both a songwriter and publisher with a performing rights organization such as ASCAP or BMI, then you’ll receive these royalties through them for any Spotify plays.

If you’re not already registered with a performing rights organization, check out CD Baby Pro. We’ll affiliate you as a songwriter with ASCAP or BMI, register your songs with collection societies around the world, and make sure you’re set up to collect all your publishing royalties.

For more information about what performance royalties are, click HERE.

Check out these articles for info on promoting your music on Spotify:

To make sure you’re getting paid all the publishing royalties you’re owed from Spotify, sign up for CD Baby Pro today.

The royalties earned off of Spotify streams are notoriously low, but do provide some income to artists. So just how many plays does it take for a musician to live above the poverty line?

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Guest post by James Shotwell of Haulix

Spotify streaming royalties often upset artists, but how many plays does a musician need to live above the poverty line? We did the math.

The streaming wars are raging on. Spotify has more than one hundred million monthly subscribers worldwide, which places the platform far ahead of its peers, but Apple Music and Amazon Music are gaining millions of new users with each passing month. Whether or not the global economy can sustain the numerous streaming platforms won’t be decided for some time, but whether or not artists can survive the streaming economy is a hot topic that needs to be addressed.

Any industry expert will tell you that musicians today have it easy. There are more avenues for exposure than ever, recording music is (or can be) cheap, and an increasing number of artists are finding success outside the traditional label system. It is theoretically possible for anyone with access to a laptop and the ability to convey a melody to become a digital sensation who has fans all over the world without the aid of big label money (though, to be fair, big label money still makes a sizable difference).

Streaming payouts are a relatively new revenue stream for musicians. No one is suggesting artists survive on streaming royalties alone. Still, with physical media sales bottoming out and competition for tour revenue increasing, the money made from streaming can have a significant impact on an artist’s ability to develop, not to mention sustain themselves.

Still, every other week someone goes viral online and builds an entire career of the profits made from streaming royalties. The majority of these overnight sensations are young and without families to support, but they still have the cost of living expenses that need to be met. That got us to thinking: How many streams does it take to survive on streaming revenue alone?

According to the Assistant Secretary for Planning and Evaluation (ASPE), the poverty line for single-person households is $11,770. If we ignore how that figure would be hard for anyone to live on in a major city (and most mid-size cities), then we can round up to $12,000 and use streaming revenue calculators to figure out how many Spotify streams someone would need to sustain themselves.

At an average payout of $0.006 per song stream, a musician living in the United States needs 3,000,000 plays annually to have a gross income of $12,000.

Of course, if the artist has a label deal the record company would get paid before the artist. Depending on the amount owed to the label, the artist may need millions of addition plays to see the same amount of income themselves.

But what about people with families? The ASPE puts the poverty line for a family of four (2 adults, 2 children) at $24,250. Using the same average royalty rate, a musician would need 6,062,500 Spotify streams to earn that amount of gross income.

Spotify Views To Money

These numbers get much bigger when the musician is part of a larger group. If a band has four members and all four have families where they were the sole source of income, the group would need to generate 24,250,000 Spotify streams to gross enough so each member’s family would be at or above the poverty line.

Premium Spotify

Again, no one is saying an artist should survive on streaming royalties alone. Some will be able to make it work, especially if they have a large following and low overhead, but most will need to create as many revenue streams as possible to survive. The key to a long career in music today is through the development of a community around an artist and their work that promotes purchasing merch, physical media, and concert tickets. That has always been true, and likely won’t change anytime soon.

How Much Money Can You Make From Spotify Streams

James Shotwell is the Director of Customer Engagement at Haulix and host of the company’s podcast, Inside Music. He is also a public speaker known for promoting careers in the entertainment industry, as well as an entertainment journalist with over a decade of experience. His bylines include Rolling Stone, Alternative Press, Substream Magazine, Nu Sound, and Under The Gun Review, among other popular outlets.