How Much Does Spotify Pay Per Stream in 2023?

Spotify is known for its personalization features and introducing features that track users listening patterns and make the user’s journey on the platform interesting and fun.  Spotify app is one of the most popular audio-streaming giants currently. Artists can easily earn from Spotify royalty. If you are someone who wants to know about Spotify pay per stream, then you are at the right place. In this article, I will tell you, How Much Does Spotify Pay Per Stream.

As the whole music industry has gone digital, releasing your albums online on platforms like Spotify can be beneficial for artists as they can earn money with the number of streams of your music. So, without further ado, let’s dig in to learn about how much does Spotify pay per stream.

How Much Does Spotify Pay Per Stream?

Artists’ royalty is one of the things how Spotify can earn through users streaming their music. Well, to make things easier for you, on average, Spotify pays artists between $0.003 – $0.005 per stream.

But it is to be noted that the revenue that you earn through your streams is shared between you and Spotify.  The approx revenue split of 70/30 – so that’s 70% to the artist/rights holders and 30% to Spotify. 

How do Spotify Streaming Payouts Work?

Like other major streaming services, Spotify too follows the platform-centric distribution model. And usually, the revenue generated and distributed to an artist depends on the following factors.

1. Spotify’s total streaming revenue pool.

2. The negotiated global payout as a percentage of that revenue.

3. The total number of streams on the platform.

4. The number of your streams on the platform.

Spotify also earns through other things, including subscriptions, pay-per-stream rates, and more. And it is also to keep in mind that not all streams are created equal. 

What is a Spotify Pay Per Stream?

Pay Per Stream on Spotify refers to the amount of money generated every time someone streams a song on the platform. Music streaming services generally generate two kinds of royalties;

1. Mechanical Royalties: Mechanical royalties are simply the amount of money generated when someone copies your original musical composition. This applies when a song is recreated in just about any format.

2. Performance Royalties: As the name suggests, performance royalties is the revenue generated and paid to songwriters and publishers whenever a musical composition is performed or broadcast publicly. Performance royalties include live performances, public broadcasts, radio airplay, and digital streams.

What Can Affect Spotify Royalty Rates?

There are many factors that can affect the royalty rates of Spotify. Some of the major factors include:

1. Your Distributors: Spotify never signs a royalty agreement with an artist. Instead, music royalties are received with the deal with your music distributor or label. So, in a way, the factor responsible is also the distributor and how much money the distributor takes.

2. Listeners’ Country of Origin: which country your listeners belong to also plays an important role in Spotify’s royalty rates. The most common example of this is that the US will pay $0.0039 per stream, while listeners in Portugal will only pay $0.0018. 

3. Listeners’ Spotify Account Plan: Spotify has two types of subscription plans, free and premium. Spotify offers better royalties when Spotify Premium users stream your music.

Wrapping Up

Spotify is known for its personalization features. You can learn more about your musical tastes and listening patterns every other day with these enhanced features. The platform is beneficial for artists as they can earn money with the number of streams on their music. To know, How Much Does Spotify Pay Per Stream, read the entire article and do share it with your friends. Keep visiting, Path of EX for more trending stuff on Technology, Gaming, and Social Media.

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