How Much Does Spotify Pay Per 1,000 Streams

Spotify is the world’s biggest digital music streaming platform and a good source of earning for musicians. The revenue generated from Spotify depends on the number of times your songs have been streamed. Apple Music and Youtube are examples of other music services that pay per stream to their content creators, and they all differ profoundly when it comes to their pay rate. A multitude of factors can be held responsible for this difference.

Spotify has a unique payment system that dictates how well of an earning a musician can make on the platform. It will be best for musicians to carefully assess whether or not they can see themselves making a career from Spotify before actually pursuing it.

We’ll assess Spotify’s actual payment system and pit it against other music streaming giants to see if it still holds its ground as the best platform to earn revenue as a musician. We can get a better idea of how well a music streaming service pays by looking at its pay rate per 1000 streams and plays. 

How Does Spotify Pay its Artists?

Spotify pays out in three separate segments that differ from country to country in regulations:

  1. Mechanical royalties – paid to the songwriters
  2. Public Performance royalties are paid out to the songwriters and their publishers
  3. Payout to the recording owners: the most substantial chunk of the payout 

Usually, we only refer to the third segment when discussing the payments given to the artists. This is because the payments differ from artist to artist, depending on their contracts and the consequent distribution of royalties. 

How Much Can You Earn on Spotify Per 1000 Streams?

Each artist will get paid a different amount per stream due to the 3 segments, but Spotify’s average artist gets paid $0.0032 per stream. A thousand streams for that rate gets you about $3.2 in revenue. The amount that gets into the artist’s bank account still depends on their existing contracts, so they may not get the entirety of that $3.2 either. 

Signed artists will earn a bit more and roughly $4.4 per 1000 streams on average. The difference is affected by the fact that the royalties and the recording fees are pre-decided under contract. These contracts can have additional distribution rights to further skew the average revenue that Spotify pays its artists. However, for convenience’s sake, we will consider the pay per 1000 streams on Spotify to be $3.2.

How Does Spotify’s Pay Compare With Other Platforms?

Despite being the biggest music streaming platform in the game, Spotify does not pay as much as you would expect. 

Source Statista.com

Services like Amazon Music unlimited pay $12 per 1000 streams on average, which is substantially larger than Spotify’s pay rate. Moreover, Spotify’s competitor Apple Music pays roughly $6.4 per 1000 streams. In comparison, Youtube pays the least revenue at a measly rate of $0.6 per 1000 streams on average.

Is Spotify Even Worth Giving a Shot?

Although the comparatively low rates could be discouraging to musicians looking to create their own music career using these platforms as a starting space, Spotify is still the best platform to earn money from. 

This is because although the money earned from every 1000 streams could not amass as much as others in Spotify, the platform still enjoys much more streams than any of the competitors. Given that Spotify has a gigantic lead over the other platforms in terms of user activity, it seems as Spotify is the most reasonable choice to earn revenue from as a musician, despite what the per-stream rate might suggest. 

Buy Spotify Plays here

Conclusion

An increasing number of competitors are joining the music streaming game, offering many incentives to lure artists away from the big fishes of the game, such as Spotify. But it’ll be hard for them to form a user base as expansive and engaging as the one found in Spotify. For aspiring musicians, kickstarting their revenues from Spotify seems to be the most logical choice at the moment. Not only is it the most economically feasible, but it also has better engagement rates, a better community, and is a better-built platform for musicians in general.