How much an artist will make per stream varies dramatically due to factors such as the streaming service used use, the negotiation made with the service, the length of the song that was played, and more.
Streaming is an incredibly convenient (and legal) way for consumers to listen to their favorite artists as well as discover a world of new artists. For the artists, however, streaming is a necessary evil that benefits their record labels and the streaming platforms much more than it does the artists themselves.
Types of Artist Royalties
There are three types of artist royalties that streaming platforms use. The first is simply a form of royalty that is generated every time a song is played. This is known as a mechanical royalty.
The mechanical royalty rate is a percentage of a streaming service’s total revenue that goes to publishers and songwriters. As of April 2024, that rate was 15.35%.
The second type of royalty that streaming services use are public performance royalties, which are the fees that artists and their publishers receive every time their music is played in a public setting. This could be anything from the background music in a grocery store to a digital jukebox in a bar.
Public performance royalties are dealt with by performing rights organizations, or PROs, which collect license fees from establishments that use copyrighted music. PROs then pay songwriters and the publishers of those songs. The size of the royalties is arranged between the streaming platform and the PRO, and it can vary.
Finally, there is the simple payout to the owners of a recording. This is the complete amount of money, containing all types of royalties associated with a song or songs, that will be disbursed among musicians, songwriters, producers, and everyone who is involved in the production and performance of the song (or songs).
In theory, artists can negotiate their own deals with streaming platforms. However, many platforms have standard contracts with set payment schedules. New artists may not be able to negotiate and get the payments they want.
What’s The Difference Between a Streaming Rate & a Download Rate?
A streaming rate is a fee an artist gets when someone plays a song on something like Pandora. A download rate is a fee an artist gets when someone downloads a song to play on something like a computer or an MP3 player.
Once again, the download rates can vary dramatically by platforms and artist negotiations. It’s very difficult to make accurate estimates of how much an artist might make per download.
How Much Money Do Artists Make From Streaming Services?
There are dozens of music streaming services online, from the big players like Spotify and Apple Music to smaller services like Deezer and Tidal. Regardless of its size or market dominance (or lack thereof), every platform has its own user base, which determines its pricing model and selling point. This means that artists earn a different share of revenue from each streaming service.
This table contains data from VIRPP about how much a platform pays an artist per stream:
| Platform | Pay per Stream |
|---|---|
| Pandora | $0.00133 |
| Spotify | $0.00318 |
| Amazon Music | $0.00402 |
| Deezer | $0.0011 |
| YouTube Music | $0.002 |
| Apple Music | $0.008 |
| Tidal | $0.01284 |
What Is Considered a Play?
For artists, streaming can be frustrating. It’s a direct way of getting their music out to millions of users, but they also receive literal pennies in return.
To make more money from streaming services, artists have to get a bit creative.
Promotion on social media and real-world platforms, like short videos and fliers, can simply let fans know that the music is out there. Some artists stream release parties on Twitch and other mediums. Artists can continually remind people that they can find their music on their favorite streaming service.
Another method is to simply make more music. The more music that is put on streaming platforms, the more listeners a band will get and the more money the band will see.
Ways to Make Money From Streaming
For artists, streaming can be frustrating. It’s a direct way of getting their music out to millions of users, but they also receive literal pennies in return.
To make more money from streaming services, artists have to get a bit creative.
Promotion on social media and real-world platforms, like short videos and fliers, can simply let fans know that the music is out there. Some artists stream release parties on Twitch and other mediums. Artists can continually remind people that they can find their music on their favorite streaming service.
Another method is to simply make more music. The more music that is put on streaming platforms, the more listeners a band will get and the more money the band will see.
Playlists & SEO
Streaming has shifted listeners’ attention away from albums and toward playlists. Getting music on a popular playlist is a guaranteed way of increasing an artist’s listener base. Spotify Artists and TuneCore (a digital distribution platform) will let a band submit a song for a playlist, which exposes the song (and the band) to a much wider range of listeners than if songs are released on an album-only basis.
Using search engine optimization will combine traditional ways of getting good rankings on Google searches, with people looking for new and interesting music on their streaming platforms. Use relevant keywords to describe your music. Even using the name of recognized artists in your genre as keywords will associate you with the style of music you want to be known for.
With these methods, artists and bands can turn streaming to their advantage.
References
Copyright Royalty Board Asked to Approve 32% Increase on Mechanical Royalties for Physical Products, Downloads. (May 2022). Variety.
Chops: The Fight Over Music Royalties. (March 2022). Jazztimes.
Justin Bieber's "Love Yourself' Is the World’s Best-selling Single for a Second Non Consecutive Week! (February 2016). World Music Awards.
Which Music Streaming Service Pays Artists the Most? (June 2022). Louder.
Here's How Much Each Music Streaming Platform Pays Per Stream. (July 2021). EDM.
Apple Music Only Pays $0.01 Per Stream. (April 2021). Rolling Stone.
Musicians Say Streaming Doesn’t Pay. Can the Industry Change? (May 2021). The New York Times.
Modern Listeners Shifting Towards Playlists Over Albums, Study Shows. (April 2020). Mn2s.com.
Publishers, Streamers Reach Deal for Highest Streaming Royalty Rate Ever: Here’s How It Works. (September 2022). National Music Publishers’ Association.
Music Streaming Payouts Comparison: A Guide for Musicians. VIRPP.
Spotify is Reportedly Making Major Changes to Its Royalty Model. (October 2023). The Verge.