Streaming is one of the most lucrative careers nowadays. In just over a decade, it has gone from zero to a hundred. These days one can live off the proceeds they make from their streaming career. Apple and Spotify are just one of the many streaming services that are available for streamers to choose from. Apple Music and Spotify are the two most prominent names in the music-streaming business.
Although they may seem the same to customers as they both have the same features and pricing, some differences put one above the other. But just how much exactly are streamers on Apple Music and Spotify paid, and is the pay worth the hype?
How Much Are Artists Paid On Apple Music And Spotify?
Due to the payment system employed for artists, the royalty rates dished out to each individual artist may be different.
Zo Keating for example is an independent cellist that enjoys streaming royalties from Spotify where she is most popular. She has revealed that the payment handed out as royalties is not enough to pay for her family’s health insurance premium.
Although the star earns more on Spotify than Apple Music because she is more popular on the former’s platform, she has revealed that she earns four times more per stream from Apple Music.
Apple Music pays $0.012 per stream for the cello pro while Spotify can only afford $0.003 per stream after the distributor fees. It is however worthy of note that the rates vary per artist.
How Do Streaming Services Determine Royalty Pay For Each Artist?
It is no longer news that hitmakers like Billie Eilish, Taylor Swift, and other artists who are frequent chart-toppers receive massive checks from streaming services each month. So how does the system work?
It is only logical that popular artists get more streams per post just by virtue of their popularity. Spotify has explained how they draw up the cut for each artist. They have revealed that if the eligible streams for the month are 1,000,000 and one has 100k streams in that month, then the artist’s stream share is set at 10%.
Simply put, if Post Malone accounts for 10% of all streams in that month, then he gets 10% of the money users paid to Spotify, regardless of which users actually streamed his songs.