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On Spotify, musicians get paid per stream. But you often hear that the pay is so low that artists can’t make a living from it.
How much money musicians get per stream on Spotify
Every song played on Spotify earns musicians different amounts of money. The royalties are much lower than you probably thought.
- How much money artists earn with Spotify varies depending on the country, the type of subscription the listeners have, and the licensing agreements with labels and collecting societies.
- In Germany, musicians currently receive €3,398 per million streams on Spotify, according to igroovemusic. That equates to €0.0033 per stream, 34 cents for 100 streams, and €3.39 for 1,000 streams. (As of May 2022)
- Artists in Iceland earn the most money: they receive €6,376.23 per 1 million streams. Switzerland and Finland follow closely behind. The US is in the middle of the pack with €3,881.01 per million streams.
- Musicians in Iraq earn the least. They receive just €175.08 in royalties from Spotify for 1 million clicks.
- For smaller bands that don’t get millions of streams for their songs, Spotify’s remuneration is not enough to live on. It’s nothing more than a little extra income.
- Since 2024, Spotify has also changed its remuneration rules: songs with fewer than 1,000 plays per year no longer receive any royalties at all. The reason: according to Spotify, the total of around $40 million would be lost through labels, distributors, and transaction fees and would not reach the artists.
Earning opportunities on other music platforms
Spotify is known as the music platform with the most subscribers. However, Spotify is by no means in first place when it comes to royalties for musicians. However, as the other platforms have a smaller reach, Spotify remains the main source of income among streaming services.
- Napster is one of the first online music platforms and is one of the better-paying providers in the industry. According to qmx.de, artists receive $19,000 for 1 million streams.
- With Apple Music, users of Apple products quickly become paying subscribers. This makes it possible to pay out $7,830 per 1 million streams.
- Online retail giant Amazon Music offers its musicians only slightly better terms than Spotify: here, they receive $4,020 for 1 million clicks.
How musicians earn money in other ways
Artists cannot get rich from Spotify, Apple Music, and the like alone. Fortunately, there are numerous other sources of income for stars.
- Live performances and tours: Concerts are one of the most important sources of income. Musicians sell tickets, often at high prices, and also earn additional income from the sale of fan merchandise during shows. The more successful a musician is, the more lucrative the fees.
- Merchandise sales: T-shirts, hoodies, key chains, or limited edition fan merchandise are an important source of income. Loyal fans in particular like to invest in products that bring them closer to the artist.
- Licensing and synchronization: When songs are used in films, series, commercials, or video games, musicians receive licensing fees. These so-called synchronization rights often result in large one-time payments.
- Sponsorship and collaborations: Many stars work with brands through social media posts, advertising campaigns, or exclusive partnerships. Such deals often generate considerable sums of money.