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  • 18 Apr
  • 2 min read
Streaming Payouts

When it comes to our favourite musicians, we just want the best for them. And, since not everyone has the means to purchase physical CDs or goods, many of us can only support artists by listening to their music on various streaming sites. 

A large number of music streaming sites do not explicitly specify how much they pay to artists, and other platforms barely pay a fraction of a penny to the artist for every song played on their platform. There is no standard rate. 

To support your favourite artist, it’s a good idea to choose the streaming platform that offers the most payouts for your purchases. Check out this article to know about the streaming payouts in 2022.

Streaming Payouts For Different Platforms

While Spotify, Apple Music, and YouTube Music are the most well-known names in the music streaming industry, there are a variety of additional services that you may use to listen to your favourite songs. 

It is possible to find hundreds of music streaming services on the globe, ranging from giants with a worldwide market, such as Spotify, to specialised services, such as Tidal. Each platform has its own price mechanism, selling point, and user base, which explains the disparity in the amount of money that artists receive per stream on each platform.

1. Apple Music

Apple Music had more than 72 million active subscribers, placing it second only to Spotify as the most popular music streaming service in the United States. In public statements, the firm has said that its average payment per stream is $0.01. 

However, that one cent does not instantly flow into the coffers of the artists. Apple Music, like other major streaming services, operates on a pro-rata revenue distribution scheme, with 52 per cent of the platform’s ad income going to music labels without regard to genre.

2. Amazon Music

Amazon Music is a highly popular music streaming service, with more than 55 million users as of early 2020, according to the company. It has been stated that they pay artists around $0.004 per play – which is in line with the industry standard for digital streaming platforms.

3. Spotify

Spotify, the world’s top music streaming platform with more than 200 million monthly active users, has a bad reputation when it comes to paying out royalties to artists and musicians.

While the firm has not yet provided specifics on how much they pay each stream, a Business Insider investigation from 2020 indicated that artists may earn as low as $0.0033 per view on certain platforms.

4. YouTube

YouTube Music, a subsidiary of the world’s most popular streaming platform, pays musicians as low as $0.002 per stream, according to the company. While YouTube Music does not pay musicians very much, the platform’s popularity, along with on-video advertisements (for music videos that are streamed via YouTube), could result in a somewhat better total revenue for the artists.

The compensation from YouTube advertisements should be in the range of $7-10 per 1,000 views. Nevertheless, not every view counts as an impression; only roughly 30-40 per cent of views on YouTube videos are for videos that include advertisements. Realistically speaking, a music video needs around 4,000 views in order to generate $7-10 in revenue.

Formula For Calculating Streaming Payouts

The most basic payment computation is pretty straightforward: streaming services normally have a defined payout rate per stream, which is multiplied by the number of streams available to be played.

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