As an artist, it’s important to know how streaming services payout. Recently, Spotify has come under fire for its low payout rates, but how bad is it?
Let’s find out!
How Much Does Spotify Pay for 1 Million Streams
Spotify pays between $0.001 and $0.008 per stream to artists. This means that if your song is streamed one million times on Spotify, you can expect to earn between $1,000 and $8,000.
The average fee for streaming on Spotify in the US is $0.004. Meaning, you’ll get paid $4,000 for 1 million views if your song is played for at least 30 seconds. That’s $25 per hour. Not bad, right?
How much does Spotify pay per monthly listener? It will depend on several factors, including the country where your song is streamed and the listener’s type of subscription.
For example, users with a free Spotify account will generate less revenue for artists than those with a paid subscription, whereas South Korea has the highest pay per stream rate — namely, $0.017.
Spotify Payments Guide
What is the average pay per stream rate, and how does Spotify compare to other streaming platforms?
1. Artists on Spotify get paid less than one cent per stream.
(Produce Like A Pro)
How much does Spotify pay per stream? Between $0.001 and $0.008. In other words, artists can earn anywhere between $1,000 and $8,000.
However, 70% of the money Spotify makes ends up in the hands of copyright holders. I.e., most of your money first goes to the record label, then the distributor, and only then does it go to the artist.
2. 250 streams will generate you $1 on Spotify.
(Orpheus Audio Academy)
If you want to make $1,000 on the platform, you need 250,000 streams. How much does Spotify pay per 1000 streams? Around $4.00.
3. South Korea has the highest pay per stream rate — $0.017.
(SpotifyBot)
Spotify pays different amounts to artists in different countries. In the US, you can expect to make $0.004 per stream. In Turkey, you can expect to make the least. How much money does Spotify pay per stream there? A mere $0.0005!
Conversely, in South Korea, where there are no free options (only premium subscriptions), you can make a lot more — $0.017 per stream or $17,860 per million streams.
4. The pay per stream (PPS) rate in the UK is roughly $0.0058.
(SpotifyBot)
Europe accounts for 40% of active Spotify listeners, so it is no surprise that the UK has the second-highest PPS rate, followed by Denmark and Iceland. How much does Spotify pay for 1 million streams from the UK? About $5,821.
5. The average revenue per user from Premium subscribers is about $4.81.
(Whipped Cream Sounds)
While Spotify has 180 million premium subscribers worldwide, they don’t contribute to the royalty pool with advertising but through subscription fees. The cost of a Spotify membership is different.
For example, a Spotify subscription in the US costs $9.99 per month, whereas membership in India is merely $1.99 per month.
How much does Spotify pay artists through a premium subscription? The global ARPU is around $4.81.
6. The streaming income from free users comes through the ads.
(Whipped Cream Sounds)
The number of ad listens you have determines how much money you get per stream. Wealthier countries, such as the US, Japan, and the UK, must pay more for their free users’ streams because they generate more sales.
Spotify vs. Tidal, Deezer, Apple & Amazon Music
7. Spotify offers lower payouts than Tidal.
(Producer Hive)
While Spotify pays about $0.004 per stream, Jay-Z’s Tidal offers the highest payment rates — approximately $0.01 per stream. How much does Tidal pay for 1 million streams? At this rate, you can make $12,840.
8. Deezer pays the least money per stream.
(Producer Hive)
Deezer’s business model allows paying subscribers to support the artists directly. For example, if a user listens to only one artist per month on Deezer, the artist will receive all of their subscription money (minus platform charges).
While this is a fantastic concept, compared to other streaming services, Deezer has the lowest average pay per stream — $0.0011. You can generate only $1,100 per 1 million streams at this rate.
9. How much money is 1 million streams on Apple Music? About $7,830.
(Producer Hive)
Apple Music is a streaming service created by Apple Inc. Users may choose music to stream on-demand, or they may listen to previously compiled playlists.
At a rate of $0.0078 per stream, if you want to make $1 on Apple Music, your song needs to be streamed at least 128 times.
You will also earn an average of $0.58 for each dollar you make on Apple Music. The remaining amount is divided between Apple’s commission (28.5 cents), mechanicals, performance rights, and production (13.5 cents).
10. Amazon Music has similar PPS rates as Spotify.
(Producer Hive)
How much does Spotify pay per stream in 2021 and 2022? You can get anywhere between $0.001 and $0.008, an average being $0.004 per stream.
How much does Amazon Music pay per stream? A bit more, between $0.007 and $0.01, the average being $0.004 per stream.
However, unlike Spotify, Amazon Music has five distinct levels of listening options: the unlimited version, high-definition audio version, Amazon Prime membership, individual subscriptions, and family subscriptions, offering you more ways to make money via Amazon.
Conclusion
So, how much does Spotify pay music creators exactly? It’s tough to say, due to different factors, such as location, the type of subscription they have, and how often they play the track.
An artist can expect to earn between $1,000 and $8,000 for one million streams on Spotify, but it’s more likely they will make about $4,000.
FAQs
How much is 5,000 streams on Spotify?
At a rate of $0.004 per stream, 5,000 streams can generate you about $20.
How much does Apple Music pay for 1 million streams?
You can get approximately $7,830 for 1 million streams on Apple Music at a rate of $0.00783 per stream.
How much is 100 million Spotify streams?
100 million streams will generate you $400,000 at $0.004 per stream. However, if we include other royalties, such as monthly subscriptions, you can make even more cash.
For example, Tom Rosenthal made between $3,400,000 and $4,500,000 when his song hit 100 million streams on Spotify. How? He didn’t sell his song to a record label, so he kept all of the money generated by it.
How much does Spotify pay for 1 million streams in this case? The platform only takes 30% of the revenue. The rest goes to the artist.
