Streaming Music Services Royalty Calculator
With this music streaming royalties calculator, you can find out what most common music streaming platforms are likely to pay you per stream.
Despite the fact that Spotify, YouTube, Apple Music, Tidal, or any other platform does not provide an official pay per-stream rate, artists, labels, and users all over the world have gathered data that can give a pretty good estimate of how much you can receive in royalties from your plays. Check out the source links for more information on the data used for this royalty calculator.
How Much Do I Earn Per Stream?
Each time a song is played on music streaming services such as Spotify, YouTube, and Apple Music fees have to be paid to rights holders (e.g., artists, record labels, composers, publishers, and so on). These fees are called royalties and they are calculated differently from platform to platform. On traditional streaming platforms, possible factors that affect your royalties are where the user streaming your music comes from and whether they have a premium or a free membership. It also depends on whether the whole track is played or only a short part. On other platforms like TikTok, for example, you only get paid based on the number of videos your song is used in. So how much you can earn per stream depends on multiple factors.
How Are Streaming Royalties Calculated?
Most streaming platforms use a platform-centric payout distribution model. This means that the platforms negotiate a certain payout rate for all their services. Most often, this is between 60% and 70% of their subscription and music advertising revenues. This results in a large pool of royalties to be distributed among the rights holders.
Royalties for each rights holder are distributed based on the streamingshare of songs owned by the rights holders. This means the amount of streams of songs of a rights holder is compared to the total number of streams on the platform on a monthly basis. This comparison does not necessarily take place on a global level but can be broken down into different markets/countries. Spotify for example has royalty pools for all the countries they work in.
To simplify this process let’s use an example. Streaming platform A has made $1000 in revenues in one month in the US, with a 60% payout rate. This means $600 is in the US royalty pool for this month. In total there were 1 million streams on the platform over this period, and your music generated 100,000 streams out of that million. So you are entitled to 1/10 of the $600. These $60 royalties are not transferred to you directly but to your music distribution company. And most likely they will take a share of that money too.
How Much Does Spotify Pay Per Stream?
According to the latest data, Spotify pays most artists between $0.003 and $0.005 for each stream.