How do other music streaming platforms calculate streaming payouts? On platforms like Spotify and Deezer, which offer free and premium plans, average payouts come from both subscriptions and ad revenue.įor a stream to count toward an artist’s payout, it must be played for at least 30 seconds. User type affects artist earnings per stream, with payouts varying across streaming platforms due to different subscription models. While there are many variables involved, streaming payouts to artists depend primarily on the local market and user type. Factors Affecting Spotify’s Streaming Payouts Indie artists usually keep all profits, while major labels take a cut for expenses like advertising and distribution. However, the timing and amount artists receive depend on their contract with rights holders. For example, if a track accounts for one in every 1,000 streams from Italy in June, the rights holders get 1/1000 of Spotify Italy’s June profits. On the other hand, with Spotify’s streamshare model, the payout per stream will depend on the monthly profits and total streams in a specific country. So, if we use Spotify’s $0.0032 per stream rate, an album with 1,500,000 streams should earn $4,800. Streaming platforms usually have a fixed payout rate per stream multiplied by the stream count. How Are Spotify’s Streaming Payouts Calculated? They pay track rights holders, who then compensate their artists. They divide monthly profits by total plays and pay artists based on that figure.Īdditionally, Spotify doesn’t pay artists directly. However, this average rate may not be fully accurate, as Spotify states they use a streamshare payment model. For a look at our data, feel free to visit our spreadsheet of the Spotify artist testimonials, their links, and the amount each artist is said to be receiving.
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