When you analyze the money you can earn from music streaming, you’ll find it’s difficult (at best) to earn enough to support yourself as an artist. But streaming is valuable as a gateway to discovery and other means of monetizing your fan base. How much does streaming pay?
Every so often there’s a dramatic industry headline about how little streaming pays artists and songwriters – artists like Pharrell lamenting they received a pittance for their millions of streams. I also regularly hear from independent artists who tell me that streaming just doesn’t pay: “I used to pay some bills with my income from CD or download sales,” the common story goes, “but I can’t even buy a cup of coffee from my streaming royalties.”
That got me curious to know, “How much does streaming pay me as an independent artist?”
So I decided to do some research. To get the answer, I logged onto the CD Baby dashboard for my own personal account (where I released my music, and that of another artist, back in the day) and looked at the recent history of payments (for the past 90 days) I’ve received from the various streaming companies. I documented what I found in this short video:
First, a few words of caution: These results are for my music. Your mileage may vary. However, most independent artists’ royalty streams are probably in the same ballpark. Additionally, these are gross payment numbers, so these payments are before CD Baby takes its nine percent administrative fee. This is what Spotify and Apple Music and Amazon pay to CD Baby — or to your record label or wherever your payments are submitted.
Here’s what my music earns through streaming:
The most streams I received, by far, came from Spotify. Spotify’s gross payment to CD Baby is 0.44¢ per stream. Apple Music provided the second-most streams, and that paid 0.51¢ — a little more than half a penny per stream — in the US. In the European Union, Apple Music pays a little more, 0.84¢ per stream. Amazon’s Premium subscription service also pays 0.84¢, and Tidal actually pays the most at 1.41¢ per stream — though, I got almost no streams from Tidal.
Really, for me, once you get past Spotify, Apple Music, and Amazon Premium, the rest of the platforms have almost no streams. One exception is YouTube. YouTube Music, YouTube’s paid subscription service, pays 0.59¢, which is actually pretty good by streaming standards (low as it is). The YouTube “ad-supported” videos — those videos that contain your music which get uploaded directly to YouTube by you or by random fans and which can only be identified and monetized with Content ID — only pay 0.06¢ (yes, 6/100th of a penny per stream), and I received quite a few streams on YouTube’s free platform.
What does that average out to when you take all the payments and all streams? My music ended up averaging 0.33¢ per stream. That means 1,000 listens of my music pays out $3.30.
Is streaming worth it for independent artists?
When you analyze how much money streaming pays, it’s clear that it’s just about impossible to earn enough to support yourself as an artist. If streaming were my only music income and I wanted to make $40,000 per year, I would need 12.1 MILLION streams in a year at my average rate. That’s an extraordinary one million streams every month!
This is why we’ve long said that the formula for independent musicians to achieve financial success is not the same as internationally recognized artists. While Taylor Swift garnered eight million Spotify streams for her single “Look What You Made Me Do” in one day (which would have grossed $35,200 using the numbers I’ve outlined here) and Ed Sheeran, who currently tops the list of “most streams per month by a music artist,” rakes in 70.32 million streams per month (that’s a cool $232,056 a month using my average calculation), how many streams are you going get in 2019? Let’s say you do pretty well and average 3,000 streams a month — that’s a grand total of about $120 in net sales for the year at $.0033 per stream.
Yet, staying off the streaming platforms is not the answer for today’s emerging artist. Thanks to streaming, every artist today can have overnight access to a huge listener base — currently around 400 million subscribers and projected by Goldman Sachs to grow to 1.1 billion listeners in 10 years. Streaming has opened up the world to music artists — something that was never possible during the physical music era. It is a gateway to discovery and exposure to new fans. Not being on Spotify, Apple, and Amazon means you are guaranteed to remain anonymous to most of the world, and that’s not going to help you grow your music career.
So what to do?
Getting paid through streams and tickets and discs and shirts (oh my)
The trick is to leverage the fans and followers you gain on the streaming platforms and get them to buy other items from you. If you’re getting 3,000 streams a month, that’s 36,000 listens a year. That means people are paying attention to your music. It’s worth targeting playlists on the streaming services and having your music available everywhere people listen to and discover music. But it’s imperative that you also try to turn those listeners into purchasers of your music and merch as often as you can. Make it easy to find you online and make it easy for people to find and buy your music and merch.
If you sell CDs and merch at your live shows and online, the profit you make from selling one CD equals approximately 3,000 streams. One t-shirt sold nets you the equivalent of 5,000 streams. If you play multiple shows a month and sell your merch and music, that revenue can start to add up. It’s going to take tens of thousands more streams to get you the same payout of a few merch sales at your gigs.
Of course, all this is easier said than done. It takes a LOT of work to attract that fan base, get them to save, like, or follow you, and then engage with them enough so that they want to come to your concerts and buy your discs and merch. You need to be creative and spend time converting streamers to buyers – which times away from creating, recording, and performing your music.
The industry continues to change. Nobody said it would be easy. Now that you know how much streaming pays, go blaze that path…
The Disc Makers YouTube Channel has a lot more “Indie Music Minute” videos that features Tony van Veen, CEO of Disc Makers, distributing nuggets of information and actionable ideas to help you make the most of your career as an indie music artist. Keep checking back, because there’s always more to come!
A release strategy to fill your yearly calendar
There’s a CD revival in the making
The MLC’s $424 million royalty distribution conundrum
Your copyright and royalty questions answered
The vinyl manufacturing process at work (watch the video!)
20 thoughts on “How Much Does Streaming Pay?”
One of the reasons that a streaming service might pay varying rates is that length of listen is taken into account. I guess that means that if one of my tracks consistently pay less than the others it is probably that there is something off-putting to the start of my track, or the song just sucks! We could probably get a rough idea of what we are doing right commercially or wrong by comparing the rate per track. Does that make sense?
I’m a fan, not an artist. How much does Deezer pay? I’d pay for Tidal just to pay the artists more, but I’m limited to a few services that my obsolete and unsupported streaming device carries, so we currently use Deezer. I have to say I don’t we (wife and I) don’t really buy merch from artists unless we REALLY like them, but we do like to listen to a lot of music, and we like to see a lot of live shows (hopefully that will happen again soon!).
$1 to make? Why does no one factor in the cost of the recording/mix/master?
Hi as it is described this is exactly how I feel my songs are available to all people on earth (moral satisfaction) but from inward mimicry.
Our Difference Do You Believe I Must Sell (CD) (Vinyl) Who I Am a freelance artist and I’m not allowed to sell,
while I believe the record label should sell which has permission.
Sorry but I don’t know English for any mistakes
You have ONE chance to have these “platformers” do ANYTHING to attempt to get you heard, and that’s if you’re insanely marketable, already a known property, do massively commercial music, and let them know ahead of time of a release, if they can get to it.
If you try to get their attention FIVE MINUTES past that submission or later, they could care less.
Just putting something up on streaming does NOT result in any “exposure” of any kind.
I am giving serious consideration to just paying to print 100 copies of my CD via a “$150 for $39 on a spindle” deal and just going out asking people for $1 for a copy. That’d literally put me miles ahead of anywhere I ever got through streaming, promotion, and everything else, including all this streaming nonsense. Oh sure, I’d lose about $700 on the deal, but it’s better than losing $750.
If CDBaby gets an average of .33 cents a stream then they are collecting all the money since, on my reports, I get about .001 cent per stream and it’s rare I get even a whole penny per stream.
This dude needs to say how much he gets per stream after CDBaby takes their cut.
It would be good to make us know how much money the “streamers” make on our artists back!
Did you guys get paid by Spotify this month/ usually get paid around the 15th of each month….still waiting….is anyone still waiting too?
I don’t know where you got your numbers …but you are TOTALLY wrong !
EX: Spotify pays between $0.00170000 and $0.00370000 per stream
Meaning you need between 3 and 5 streams before you make .01 cent
(and FYI , 1000 x .44 = 44.00$ …not 4.40$)
1) Spotify does indeed pay a variable rate depending on whether it’s an ad-supported stream or a paid subscriber stream. My average payment is 0.44 cents per stream when combining ad-supported and paid streams. Your average may be very different depending on his mix of paid vs. ad-supported streams. In my personal experience with Spotify I need somewhere between 2 and 3 Spotify plays to earn one cent (not 0.1 cent): 1 cent payout / 0.44 cents per play = 2.27 plays to equal one cent. Again, depending on your mix of paid vs. ad supported listeners your mileage may vary.
2) and FYI, 1000 x 0.44 cents = 440 cents. Which is $4.40, not $44.00.
Isnt 1,000 x’s .44=$440? The numbers you show would be for 100 streams?
Ah, but you’re confusing dollars and cents.
1000 x 0.44 cents = 440 cents. Which is $4.40, not $44.00.
We should all be so lucky that Spotify paid $.44 per stream. Alas, it’s $.0044 (or 0.44 cents).
Your math is off because your initial numbers are wrong. Spotify pays .0044 cents NOT .44.
Your 1000 streams does not pay you ( or me ) $3.30 – It pays you 3.3 cents. I think your math is wrong, just like the industry’s notion that the value of listening to a song is only worth 3.3 thousandths of a penny. Not such a great model unless you’re Taylor.
I half agree with you.
Disagree on my math being wrong. My math is right: 1000 x 0.33 cents = 330 cents. Which is $3.30.
Agree on the industry being wrong that a listen is only worth 33 hundredths of a penny. It’s good for big name legacy acts, but bad for independent musicians trying to build a fanbase.
Tony, Yes – You’re right. Sorry, as others did here, I was calculating with Cents and it should have been Dollars.
My band is making on average 32 cents per stream across all distributors, net after CD Baby’s cut. 35 cents gross. Not as horrible as I thought. Thanks for the video!
A very well-thought out and presented commentary on the state of the streaming industry. As a CDBaby/Discmakers artist since 2013 I have had the same experience with 6 CD’s. I check my Dashboard every few days and am always fascinated by what parts of the world are playing my music . If you are just getting started I urge you keep at it and you will see surprising results from surprising places. Thanks, Tony!!
I think your decimal points are in the wrong place. Spotify averages about .005 cents per stream.
Naaah. It’s .005 dollars, or .5 cents. In my case it’s .0044 dollars, or .44 cents, but your mileage may vary if you have more streams from paid subscribers.
It’s easy to be confused by this because your distributor probably reports in fractions of dollars, and in my video I transposed it to fractions of pennies.
Tony, you are correct sir!