Do Artists Get Paid Every Time Their Song is Played on Spotify?

It’s nearly impossible to exist in today’s musical economy without uploading your art to streaming services. Platforms like Spotify, Apple Music, Deezer, Pandora and a number of others have become the go-to way for millions of music lovers to access the tunes they can’t get enough of. Sales aren’t dead, but to avoid streaming services for any reason is to do your career a real disservice.

While they have become unavoidable and a must for all acts, not all musicians love streaming sites. They are crowded, it’s nearly impossible to gain traction, and their payout rates are notoriously low. Many artists have a lot of questions about these services and how they pay, and this article will aim to answer a number of the most frequently asked of them.

Not sure what to do once your music has been posted to streaming services? Let a top ranked Los Angeles music promotion company give you some expert guidance!

 

In This Article:

• Will I Get Paid Every Time Spotify Plays My Song?
• How Can I Benefit From A Music Streaming Service?
• How Does Spotify Pay Artists?
• How Much Money Do You Earn From 1,000 Streams?
• What Milestones/Tiers Of Earnings Does Spotify Pay Out At?
• Do You Need A Bank Account For Your Band To Get Paid From Spotify?
• What Do Artists Need To Get Their Accounts Set Up So They Can Receive Payments?
• How Are The Rates Spotify Is Offering Changing?
• Do Rates Change As You Pass Certain Listener Milestones?

 

Will I Get Paid Every Time Spotify Plays My Song?

Whether you are an independent artist or one signed to a major label, you will certainly use many major streaming services to get your music out there for everybody to experience and enjoy. The biggest and most-used platform around today is inarguably Spotify.

The short answer to the question above is: yes. As long as the song is played for thirty seconds, Spotify counts it as a stream and a per stream royalty is added to your grand total, which will be paid out at a later time. Looking into how much an artist earns per stream is the key, as we’ll see.

In recent years there has been an outcry from artists claiming they are not being paid enough by Spotify. Many musicians have argued that the music streaming giant’s payouts are simply not high enough. As of 2019, Spotify reported that it pays between $0.00331 and $0.00437 per stream. However, that amount still needs to be split among different people. For instance, the final payout Spotify delivers has to be divided among the artist’s record label (if they have one), their publisher, and other entities such as the American Society of Composers, Authors, and Publishers (ASCAP).

Recently, Spotify increased its payout sum, but not by much. However, for artists signed to a label, this increase still needs to be split between different parties with a financial interest in the work (publishers, writers, etc.).

For an independent artist who owns their own masters and the rights to all their songs, splitting the royalties isn’t the problem—it’s getting those streams to rack up in a timely manner. For these reasons, the proper promotion and release strategy is of the utmost importance.

To help make the aforementioned infinitesimal figure a bit easier to grasp, an artist would need roughly 400,000 streams to earn an amount comparable to the average monthly minimum wage. Multiple sources have reported that Spotify will continue to increase its payouts as the number of subscribers grows.

What do you need to have ready before the masses begin streaming your music? We can help you figure that out!

How can I benefit from a Music Streaming Service?

One of the main reasons why streaming services are so important is because they allow you to connect with millions of people. This includes those individuals who have listened to your songs before as well as those who may be introduced to your music for the first time. This is an exposure you may not be able to get anywhere else.

Traditionally, other avenues for reaching large audiences, such as promoting music on the radio, can help you impact a particular segment of the population. However, streaming services such as Spotify can give people access to the music of their favorite artists any time they wish for as long as they want. This ease and the amount of control the user has over the music choices may work to your advantage. For the younger generations of music listeners who didn’t grow up shopping in record stores, Spotify is the number one place they’ll look for your music if they happen to discover it through other viral content factories, such as Twitch, TikTok or YouTube.

If you are an up-and-coming artist looking to expand your fan base and widen your popular appeal, you can’t afford to not have your music available on streaming platforms. Granted, the return on investment via streaming may not be enough to live on, but it can help to boost your presence in the market. Unlike in the past when it was standard to release a new album every two years, there is no limit to the amount of content you can put out on Spotify.

Another exciting benefit of streaming your music is having access to valuable data. You can see how many people have listened to your music, giving you an idea of what needs improvement or what has been a hit with listeners. Despite intense debate regarding revenues and royalties, these digital platforms must become an important part of your music promotion efforts, if they aren’t already.

How Does Spotify Pay Artists?

Spotify does not directly pay artists who are on the platform. You also cannot upload your music directly to Spotify. The middleman in this situation is a music distributor, such as TuneCore, DistroKid or CDBaby. These websites are the conduit between the artist and Spotify, and they are the ones who receive your royalties.

With your email, create an account and then upload your songs for release. You are able to choose between dozens and dozens of well-known and barely heard of streaming services, of which Spotify is only one. Spotify allows for songs to be released a week or so after uploading, but that’s considered rushing it. Most artists plan their release carefully and upload the music two or so months in advance so they can take advantage of pre-order promotion, releasing a single before the entire album is made available, or they work on getting placed in a popular curated playlist.

Once your music begins racking up plays, Spotify keeps track of all those listens and pays out the appropriate amount to whichever distributor you decided to work with (and there are a lot of them). Then, it’s up to that company to actually pay you, which may be delayed slightly.

 

How Much Money do you earn from 1000 streams?

With the average per-stream rate going at roughly $0.0038, 1000 streams pays around $3.80. Be sure to check out our streaming royalties calculator to see how much you can make with your current numbers.

 

What milestones/tiers of earnings do they payout at?

There are no milestones or tiers that must be reached in order for Spotify to pay. Instead, your chosen distribution company is updated with a report of your streams every six to 10 days. The number of days does vary in an irregular way, but it never exceeds 10. Just about once a week, you will receive, through your distributor, a record of how many streams/purchases your tracks received, where the interactions came from by country, and how much money was earned. It also updates your royalty total, which can be withdrawn via your preferred method.

 

Do You Need A Bank Account For Your Band To Get Paid From Spotify?

If you’ll be requesting a check, all you really need (besides your uploaded music being listened to) is an email address to register an account with TuneCore or DistroKid, to name just two options. For direct deposit or PayPal, you need your checking account information, bank card, and sometimes your address handy.

 

What Do Artists Need To Get Their Accounts’ Set Up So They Can Receive Payments? 

If you’ll be requesting a check, all you really need (besides your uploaded music being listened to) is an email address to register an account with TuneCore or DistroKid, to name just two options. For direct deposit or PayPal, you need your checking account information, bank card, and sometimes your address handy.

 

How Are The Rates Spotify Is Offering Changing? 

Spotify reports its per-stream royalties as having gone up over the last few years, and they truly have. But, when we’re talking about hundredths of a cent, it’s hard to feel the effect unless your uploads are being played thousands, hundreds of thousands or even millions of times by people all around the world.

 

Do rates change as you pass certain listener milestones?

No. Spotify states that all streams incur the same royalty rates, but artists such as Beyonce and Taylor Swift have claimed that as their numbers went up, the payment rates went down due to streams that came from non-subscribing free listeners.

If you’re going to upload your music to Spotify, you need to make sure you’re promoting it as well. Give us a call to talk about how we can help make your next release a success: (323) 952-5050

 

Music Promotion Company Serving Independent, Local, and International Artists in LA

The Los Angeles music promotion professionals at Planetary Group understand how the music business works and can help you design an effective promotional campaign for your next project from consulting to online music promotion. Thanks to our many years in the music industry, we can build strategies tailor-made to fit your needs. Is PR right for your band? Shoot us an email at info@planetarygroup.com to find out.