The Streaming Platform That Pays Musicians The Highest

The Streaming Platform That Pays Musicians The Highest | I Love Classic Rock Videos

via Happily Ever Music / Youtube

In 2022, the resurgence of vinyl records in the UK marked its 15th consecutive year of growth, reaching 5.5 million units, the highest level since 1990. The vinyl revival continued into 2023, with the British Phonographic Industry (BPI) reporting an 11.7% increase in sales compared to 2022. Interestingly, CD sales also exhibited signs of recovery. This trend prompts speculation about whether the growing disillusionment with streaming platforms contributed to the resurgence of physical formats.

While streaming became dominant in the 2010s

Eliminating the era of illegal mp3 downloads, it introduced new challenges for emerging artists. While established artists like Ed Sheeran, Taylor Swift, Elton John, and Queen thrive in the streaming era, smaller artists face hurdles, especially with recent changes to Spotify’s royalty payment scheme.

In November of the previous year, Spotify faced criticism for announcing modifications to its royalty payment system. One proposed change for 2024 required songs to achieve a minimum of 1,000 plays annually to generate any royalties, impacting smaller artists negatively.

Spotify, boasting over 210 million paid subscribers and 515 million monthly active users globally, pays artists less per stream ($0.003-$0.005) compared to some of its competitors. According to Viberate, the high-fidelity streaming service Tidal stands out by paying the highest royalties per stream ($0.0125 to $0.015). Artists on Tidal can anticipate earning $1,250 to $1,500 for every 100,000 streams.

Here are the average streaming royalty rates for the six most popular music streaming platforms:

  1. Spotify: $0.003-$0.005 per stream. (Avg. $400 per 100,000 streams)
  2. Apple Music: $0.006-$0.008 per stream. (Avg. $600 to $800 per 100,000 streams)
  3. Tidal: $0.0125-$0.015. (Avg. $1,250 to $1,500 per 100,000 streams)
  4. YouTube Music: $0.001-$0.003 per stream. (Avg. $100 to $300 per 100,000 streams)
  5. Amazon Music: $0.004-$0.007 per stream. (Avg. $400 to $700 per 100,000 streams)
  6. Deezer: $0.005-$0.007 per stream. (Avg. $500 to $700 per 100,000 streams)

It’s crucial to note that a stream is counted when a song is listened to for a minimum of 30 seconds. The payment per stream is influenced by factors such as the platform’s total revenue, the artist’s total streams, the listener’s subscription, and the listener’s location, with a typical 70:30 split between rights holders and the streaming platform.