How exactly do music artist make money from streaming on Spotify or other platforms?
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Spotify pays between $0.003 and $0.004 per stream for the rights to a song. This comes out to around $3 to $4 for 1000 streams.
Artists need to have a minimum amount of streams (5000) before they can monetize.
This also means that your song has to be pretty popular before you even make a penny, with Spotify recently threatening to de-monetize artists that don’t stream enough.
Further to that Spotify doesn’t pay artists directly but rather recording labels, publishers and to collecting societies that act on behalf of the artist and take their cut.
This means that the average artist gets peanuts for their songs being on spotify.
Since streaming sites cut into traditional record sales and radio air play such sites have had a significant impact on traditional revenue streams for artists. Additionally the cost of touring has gone up significant since the pandemic, and record companies are now insisting on taking cuts of merchandising and ticket sales to make up for lost revenue leaving up and coming artists with even less.
This will sound crazy, but they have advertisers and subscribers who pay money, and they pay artists a tiny bit of that money per play.
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