How do artists make money on Spotify? It is a frequently asked question by artists and music recorders. People want to know is Spotify the best way of earning or not? Spotify is a wide music streaming service that amuses its listeners and users with high-quality content at any time at any cost. You can hear songs for free or subscribe for premium also. Spotify is used by 170million people due to its subscription-based and advertising free music since 2008. It is a great platform for earning money for artists of every genre, including musicians and songwriters, just like YouTube. It allows the artist to get money through advertising on Spotify.
Spotify’s artists, including live singers and recording artists, receive royalties (payments) based on the streams. But unfortunately per stream royalty of both platforms (YouTube & Spotify) for their artist is not much. YouTube offers $0.00069 per view to the content creators. Spotify pays $0.003 to $0.005 per stream. That simply means the Spotify artist has to struggle hard to earn on Spotify. To earn about 1 dollar, they will have to make 250 streams. The payment depends upon the distribution contract and listener base.
According to RIAA (recording industry association of America), the paid subscriptions have replaced the album sale. Moreover, the pandemic situation has also decreased the live events and music revenue by 23%. That has made Spotify earnings for artists tough.
The revenue rate for the artists was $0.0052 (on average) in 2014. But after two years, the payout rate reduced to $0.0043, and in 2017 it was dropped to about $0.00397.
The music industry has kept more awards for recorded labels than that of musicians. Music streaming services as Apple Music and Spotify earn more from subscription fees and advertising. Total number of Spotify streams enable artists to get paid every month. They are paid for music, whether it is played on the radio, a passive broadcast, or online. The right song artists are paid separately, while distributors are paid separately. Tune core and distorted two basic distribution services are more known among single artists and managers. Tune core does not take revenue streaming for music by artists, but the artist has to pay $50 for an album.
If you are a good singer or songwriter, you can confidently subscribe as a paid subscriber on Spotify to earn money. You can follow the following procedure: