How Much Does Spotify Pay Per Stream in 2023

Streaming music online is a trend in the tech-savvy age. So, music artists also try to make their songs available to the online audience. Cassettes and CDs are a great choice. Still, many artists like to release their songs online to different streaming platforms like Spotify, YouTube, and Apple Music. Moreover, as a music professional, you will also find an opportunity to earn revenue from Spotify. But how much is the platform to a Spotify artist? We have discussed the pay-per-stream model of Spotify to help you make the right decision.

According to the latest data in 2023, the growth of the music streaming industry has touched $6 billion. The market specialists think it will flourish more and cross $7.3 billion after a few years. So, you can also take advantage of the fastest-growing music streaming platforms and earn more in the coming years.

How much can an artist earn for every stream on Spotify?

The average payout per stream on Spotify ranges from $0.003 to $0.005. The revenue split model for music artists is 70/30. So, 70% is paid to the rights holders or artists, while 30% goes to Spotify. A song’s rights holders include songwriters, publishers, and recording owners.

However, the pay scale we have mentioned is not fully accurate. Several factors can affect the royalties offered by Spotify. Not every play lets you earn the same amount. Promoting your Spotify music can make songs reachable to more audiences.

Which factors are related to the Spotify artist’s payout rate?

You have to consider some factors to determine how much you will get paid for streaming your music to Spotify.

Type of music listener

What type of audience have you targeted to earn money from Spotify? As a Spotify artist, you have the opportunity to earn high royalties if premium subscribers listen to your music. On the other hand, if a free user listens to the same song, you will be paid low. Why? It is because Spotify itself earns an amount from premium subscribers. The company will pay you more as it makes more money from these users.

Location of your listeners

Spotify is an international company and has subscribers from different countries in the world. So, not every user generates the same amount with every play. For instance, when a user streams your music in a third-world country, you may not be able to earn a high amount. On the other hand, if that music is played by a US-based listener, you will have a higher royalty payout.

The cost of a Spotify subscription for users also varies with countries. Besides, there is a variation in the advertising rates. 

Your music distributor

Royalties that you receive depend on your deal with the music distributor. The amount earned by artists for every stream is different. You have to calculate the amount deducted by the distributors. In this case, Spotify does not play any role, as the music distributor is involved in it.

Like other streaming services, Spotify considers a platform-centric or pro-rata distribution model. So, the revenue earned by the company is distributed to the artists who have released their music. However, it depends on critical factors-

• Total revenue pool that Spotify has gained for music streaming
• The global payout- As the proportion of the revenue
• The number of music streams on Spotify 
• The number of your songs streamed on this platform

There is no particular revenue pool for Spotify. Instead, you will find separate pools of revenue for every local market, country, and subscription. So, the value will be different even if the number of streams is the same in 2 countries.

Various types of Spotify royalties

Music streaming on Spotify generates multiple types of royalties. It is also highly significant to rights holders collecting the amount.

Mechanical royalty

When there was no digital media, music artists used to receive royalties for mechanical reproduction of songs (on different physical mediums like CDs).

However, as it is a digital age, online sales have replaced mechanical royalties. Thus, you receive payments whenever you stream or download your composition. Each music play is considered a reproduction, and you can calculate the earnings accordingly. 

Performance-centric royalties

Publishers and music composers receive these royalties when they have publicly presented a musical composition. It involves different events like live performances, radio airplay, public broadcasts, and online streams. When your music fan streams your song on Spotify, it turns out to be a performance royalty.

More ways to earn money as a Spotify artist

You can look for some unique ways to make money from Spotify. If you have created your account on Spotify for Artists, you have a verified profile. The music distribution platform helps you sell concert tickets. You can use your profile page for this purpose. Musicians can use their Spotify accounts to promote upcoming concerts. So, you can also sell more tickets using the platform.

Spotify also has various playlists for songs, including Blues, Hip-hop, Jazz, Pop, Rock, and Country. 

As a music artist, you may also add your songs to the relevant playlist to increase their visibility. Needless to say, better visibility of your songs means higher pay per stream from Spotify. So, use these tricks to boost your income.

The overall amount that you will be able to earn from Spotify is variable. You may find higher revenues by attracting more followers on Spotify.

Calculate your royalty rate as a Spotify artist

It is challenging to make royalty rate calculations as you can find no co-efficient for the formula of pay per stream. You may think that budding singers and popular music artists have no difference on the platform. However, this claim is not true, as popularity indirectly affects your income. Popular musicians win higher royalty and earn more money. So, you can now become a Spotify artist and try to attract more followers. To distribute your music, you can use SoundOn, an all-inclusive platform that lets you promote your work. You will earn more royalties and avoid administration charges. Music artists can also market their new releases on SoundOn.