Spotify Download Royalties

12/11/2021by admin

While Apple Music has not announced an official pay per stream amount, music industry professionals have calculated a number that seems to resonate with others to answer the question, “how much does Apple Music pay artists?”. 'Spotify does not calculate royalties based upon a fixed “per play” rate.' An artist’s royalty payments depend on the following variables, among others:. In which country people are streaming an artist’s music. Spotify’s # of paid users as a% of total users; higher% paid, higher “per stream” rate.

  1. Spotify Artist Royalties

Exactly how much streaming services pay out to musicians in royalties has always been a hot topic. In truth, there's no simple answer, but we'll try to explain how much your music could be earning in streaming royalties from platforms like Spotify, Apple Music and more as well as the different factors that affect royalty payments.

How much do music streaming services pay musicians?

Music streaming services like Spotify, Apple Music, Deezer, Tidal and Amazon don’t have a fixed “pay-per-stream” rate when it comes to paying out music royalties to artists.

There are lots of factors that affect how much money one stream is worth in royalties. The main factors include:

- The listener's country and location

- Whether the listener has a paid subscription or free account

- The specific artist’s royalty rate

- The relative pricing & currency in different regions

This makes things complicated when trying to predict what you'll earn in streaming royalties. It's just about impossible to accurately calculate exactly how much you’ll make from a certain number of streams, as all these factors need to be into account.

However…

A recent study based on information collected from real musicians and third-party websites provides a general look at the estimated royalties currently being paid out to artists in the USA by the world’s biggest music streaming platforms.

Using this data, we’ve created a Music Streaming Royalties Calculator.

Just choose a music platform, enter your predicted streams and check out the estimated royalties total in US dollars.

IMPORTANT: THE ESTIMATED ROYALTIES PREDICTED BY THIS CALCULATOR WILL NOT BE 100% ACCURATE. MANY FACTORS AFFECT STREAMING ROYALTIES AND THIS SHOULD ONLY BE USED AS A GUIDE.

Of course, the royalty figure you get here won’t be an exact match to your real-life royalty statements due to the unpredictable nature of streaming payouts. But it does offer a nice ball-park figure to help you understand how much your streams are generally worth.

As you can see, some music services pay out more than others. But keep in mind that some platforms with lower royalty rates may have more users and a wider reach. So a stream from certain platforms might actually be worth more in terms of reach, exposure and building your profile.

If you’re interested, here are the estimated “per-stream” figures our calculator is based on.


Napster

$0.019 per stream

Tidal
$0.01284 per stream

Apple Music
$0.00783 per stream

Google Play Music
$0.00676 per stream
Deezer
$0.0064 per stream
Spotify
$0.00437 per stream
Amazon
$0.00402 per stream
Pandora
$0.00133 per stream
YouTube
$0.0.00069 per view

While these numbers might give a vague idea of music streaming royalties in the United States, it’s important not to think about streaming services solely as money-making platforms.

As you can see from our calculator, it takes a lot of streams to start earning the big bucks - not that it's not possible! There are loads of independent artists out there doing huge streaming numbers and making a good living solely through streaming royalties.

However, when you release music on Spotify, Apple Music and other streaming platforms, they offer a direct route to new and current fans. Exposure like this is a stepping stone to success.

Do you have any questions about music streaming royalties? How closely does our estimated music streaming royalty calculator reflect what you earn from streaming services?

We’d love to know! Let us know in the comments and below and share this with your fellow musicians.

Article Content

One of the greatest misconceptions among musicians is that in the digital era, income from music has virtually disappeared. This conventional wisdom perpetuated among musicians is that a handful of rock stars earn a solid income while the rest of us earn a pittance from low-paying streaming services. While it is true that sources of income have shifted significantly over the last 20 years, a look at different sources of music royalties shows that income from music is still viable, if you can identify the channels through which to find it. This article is meant to outline some of the different sources of income from the use of music in all its formats.

Music Copyrights and Publishing

Let’s review some of the concepts covered in our Music Copyright and Music Publishing articles. Firstly, music copyrights are divided into two categories: music compositions and master recordings.

Music compositions do not require permission for use and are compensated at rates set by the government. The rights to master recordings, on the other hand, are controlled exclusively by the copyright holder, who can charge whatever he or she wishes for the use of the recording.

Spotify artist royalties

Indeed, it is legal for an artist to charge $2 million to purchase a copy of their recordings. Each category discussed below generates royalties for either the use of a music composition, master recording or both.

Royalties for the use of musical compositions are divided evenly between the composer and the publisher. The composer is the individual who writes the music and lyrics, and the publisher is a party that co-owns the music in its conceptual or written form. If the music is released through a record label, the record label will likely play the role of publisher.

If the writer has not signed a contract, he or she owns their publishing rights and keeps 100% of the royalties. Whoever is legally considered the publisher is entitled to 50% of the royalties from the use of a composition.

Mechanical License

A mechanical license generates royalties for the mechanical playback of a musical composition. Developed in the era of the player piano, mechanical licenses are intended to compensate a composer if their music is purchased in a mechanical format. CDs, mp3s, toys, video games, ringtones and music streaming are all examples of media that generate mechanical royalties. Mechanical licenses are also the method by which artists are legally allowed to sell recordings of cover songs.

An individual that “covers” the music of another writer can legally do so by paying a mechanical license fee to the original composer. This is called a compulsory mechanical license. It is compulsory because it forces the composer to allow the composition to be used, even for commercial work, as long as the party covering their music is willing to pay the full fee for the license.

The fee for a mechanical license is 9.1 cents per copy of a song sold, divided between the writer and the publisher.

Performance Rights

Performance rights cover the royalties for the public performance of a music composition. Initially created as a method for compensating live performances, performance rights have expanded to cover all public broadcasting of a work, including terrestrial radio, music played in bars and clubs, television broadcasting, and of course, music streaming.

Performance royalties are collected by Performance Rights Organizations, also known as PROs. These organizations, such as ASCAP, BMI, and SESAC, monitor the broadcasting of all music, including live performances, and collect royalties from broadcasters and venues that present music to the public. Once the PROs collect these royalties, they distribute money based on the number of plays tracked on all different forms of performance and broadcasting.

The writer and publisher of a work split these royalties 50/50. In order to collect performance royalties for your own work, you need to register your music with a Performance Rights Organization. If you self-publish, you must register as both the writer and publisher to receive 100% of the income from performance royalties.

Synchronization Fees

“Synchronization” refers to the synchronization of audio to visual media such as film, television, or commercials. Unlike the sale of CDs and records, synchronization offers the opportunity to generate income at little cost. It costs the composer nothing to license a song to a film or television company, and the same work can be licensed for to any number of outlets.

Spotify Artist Royalties

When a company licenses a work for synchronization, they are paying to license the composition and usually the master recording too. Synchronization fees are negotiated between the copyright holder and the party licensing the music. The fees are then divided evenly between the writer and the publisher. If the work is broadcast publicly, in movie theaters or on television, the composition may generate further royalties in the form of performance rights income.

Record Sales

Music recordings sold on CD, record, tape, or mp3 are compensated at rates set by a contract between an artist and a record label. The contract designates a royalty percentage anywhere from 10-50% of each copy sold. Labels often offer advances, or upfront payments to an artist to cover production costs. An advance is seen as a loan, paid back to the record label with zero interest, through the artist’s royalty percentage.

Sales of recordings generate a mechanical fee of 9.1 cents per song on an album, designated to the writer and publisher of a work. However, these fees are likely to be folded into the record contract, ensuring that the writer and performing artist receive the effective percentage rate laid out in the contract.

Music Streaming

Music streaming services, depending on which service you are looking at, earn income from advertisements and subscription fees, then pay out those fees as royalties in three categories: mechanical playback of a composition, performance of a composition, and license to use a master recording.

Music streaming is seen by our legal system as a hybrid of mechanical playback and public performance. Therefore, songs hosted by streaming services generate both a mechanical royalty and a performance royalty for each playback of the composition. To use a master recording, interactive services such as Spotify and Apple Music receive permission by paying copyright holders upfront for the license to use their recordings.

Conclusion

Music royalties are generated by a host of different sources. The writer or publisher of a piece of music can receive income from mechanical licenses, performance rights income, synchronization, and music streaming. The owner of the copyright to a master recording earns income from synchronization and music streaming. Streaming services generate pay out mechanical fees, performance royalties, and license fees for recordings. No matter what, a cursory look at streams of income from music royalties shows that it pays to own or co-own the rights to a significant body of work.

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