How Much You Can Earn from Spotify Based on Each Stream?

Are you a rising artists on Spotify and wondering how much you can earn? Well, there is a fair chance of building a successful career in music through monetization system.

Spotify is currently the biggest audio streaming platform where listeners like to listen to their favorite music and podcasts. The platform has grown to a massive scale with its huge global user base including premium subscribers. The number of music artists is also increasing on the platform and that is what making the modern digital situation even more competitive. 

However, emerging music artists are still more inclined towards Spotify due its global popularity and monetization benefits which can help to pave a successful way ahead. When it comes to royalty, Spotify claims that is not easy to give a certain number that is paid to each artist for each stream as it varies based on different factors such as geo-location, DSP and others. The monetization structure can change every month based on each country and subscription types.

What is the rate for each stream on Spotify?

According to a recent report, that platform pays around $0.003 - $0.005 for every stream on an average. But that varies on many factors. Usually, the royalty is split in a 70/30 ratio where the artists receives 70% of the streaming royalties and Spotify itself claims 30% as a platform fee. Considering the benefits of Spotify for Artists, it can appear as a fair pay out where the platform is offering the maximum amount the artists.

The right holders for the song are not just the registered singer but it can also include the songwriter, the publishers, the record label owner and many others. When it comes to bands or musical groups; the royalty is further shared among all members and that is how the amount received at the end of the day can be less than you imagined. 

How each stream of Spotify is counted for royalty?

If you think that you can increase the stream count by playing your track multiple times; you are very wrong. Each song needs to be played for at least 30 seconds to consider it a complete stream but this 30-second threshold cannot be manipulated but uploading tracks that are 30 seconds long only. Spotify CEO Daniel Ek has explained that no artist can make $1,200 per month just by rigging the system. 

In order to monetize your music content on Spotify, the song must reach 1,000 streams in the last 12 months or a year which makes it eligible for the royalty. 

What are the rates for Spotify stream in other countries?

As mentioned before, Spotify has different subscription models and royalty charts based on different countries. The royalty system might appear unfair to many as the royalty structure is quite lucrative for a some countries but for the others; artists are required gain even more attention to reach to similar place or just to sit on the green branch. According to an analysis of average royalty value on Spotify shows that there are not much digital footprint and detailed report for the reasons behind this variant of royalties and till now, it was only possible to collect data from 133 countries. 

Only a Handful of Countries over $2,000

With the analysis for the 133 countries around the world, it is evident that only few countries get a huge and lucrative value for royalty through Spotify. There are around 59 countries that receive less than $1,000 per one million streams on the platform as these countries have a huge market and listener base. Some of these countries are India, Philippines, Indonesia, Argentina, Egypt, Turkey and others.

There are only 33 countries that receive more than $2000 for every million streams and so, around 100 or more countries do not receive a high royalty. These countries mainly belong to the Latin American and African region along with some European countries as well.

Europe Seems to Dominate the Royalty Chart

When it comes to gaining highest royalty, Europe seems to dominate with multiple European countries being a part of the top 10. South Korean is the only non-European country to be a part of the top 10 countries but the top place is acquired by Iceland. This small country with a little population has the highest royalty rate. It is followed by the countries like Switzerland, Finland and the UK; and all of them share almost the same amount of royalty. There are also Ireland, Denmark, and Norway to achieve the mark of than $5,000 per million streams. 

The Winners and The Losers

The value for pay per stream of PPS has significantly increased in the countries like Iceland, Argentina, El Salvador, Kuwait, Brazil, Mongolia, Jordan, and Honduras. However, the rate for PPS has dropped for South Korea and it is valid since the value for royalty was very high at the beginning. India and Turkey are currently at the bottom of the pit as the rates have declined -24% and -20% respectively. The reason could be inflation in the country but it is still quite eye catchy when considered with other countries. 

Comparative Data of Pay Per Stream (PPS) in 133 Countries for Spotify

There has not been much changes in the English speaking countries but the UK and Ireland has retained its place of gaining higher PPS. On the other hand, there are Australia, New Zealand, and the USA who are roughly at a similar range. Canada is at the back but still growing gradually. It is evident that the rate for PPS can change based on various factors and the economy as well as population of music listeners is also a major factor in this case. Let’s find some data on PPS for 133 countries around the globe. 

Bottom Line 

The modern digital landscape for music artists is not that smooth, but it definitely has seamless opportunities. With the help of reliable promotion and marketing agencies, it can become easier to reach potential listeners. Focus on making good music, and you will definitely find your moment to shine.