Every artist on Spotify has one burning question on their mind: How much does Spotify pay per stream?
Whether you're eager to upload your music to the platform or have already done so but find your payouts falling short of expectations, your curiosity about Spotify's pay-per-stream rates is completely justified.
In this guide, we will reveal the amount Spotify pays per stream, and also dissect the factors that influence these payouts.
How much does Spotify pay per stream?
While Spotify has not officially disclosed its per-stream rate, it's estimated that, on average, the platform pays out approximately $0.003 and $0.005 per stream.
If we consider the lower end of the payout spectrum, at $0.003 per stream, you would earn approximately $3 for every 1000 streams on average. To achieve a monthly income of $1000 on Spotify, you'd need to accumulate a staggering 1 million streams per month.
In comparison to other leading streaming platforms, Spotify's payout to artists is relatively lower. To put it in perspective, Apple Music averages around $0.1 per stream for its artists, while YouTube Music typically yields an average of $0.008 per play.
What are the factors affecting Spotify’s pay-per-stream?
Your potential earnings on Spotify are shaped by a range of crucial factors, such as the geographic origin of your audience, their subscription status (free or premium users), and your distribution deal.
Let's take a closer look at the factors that influence streaming revenue.
Listeners' location
Spotify's royalty rates fluctuate from one country to another, with some regions offering higher rates than others. To illustrate, in 2021, the United States had a royalty rate of $0.0038 per stream, whereas in India, it stood at $0.0021 per stream.
Type of the subscription of your listeners
Spotify offers a free version supported by ads and a premium version that offers ad-free listening along with additional benefits. Typically, artists generate higher revenue from streams on the premium version compared to the free version.
Your distribution deal
Revenue from Spotify streams is often divided among the artist, record label, distributor, and collaborators. Consequently, even if an artist accumulates a substantial amount from their streams, they might only obtain a fraction of that revenue.