Thursday, May 19, 2022

How Much Apple Music Pays Per Stream

Streaming Services Open Up About Artist Payouts Seeking To Win Credibility And Subscribers

How Much Apple Music Pays Per Stream | Apple Music Royalties Earnings

    Apple Music told artists it pays a penny per stream, according to a letter viewed by The Wall Street Journal.

    The disclosure, made in a letter to artists delivered Friday via the services artist dashboard and sent to labels and publishers, reflects music-streaming services increasing efforts to show they are artist-friendly. Apple Inc.s move can be seen as a riposte to Spotify Technology SA, which last month shared some details of how it pays the music industry for streams on its platform.

    Why Do Artists Fall For Fake Music Promotions

    It is commonly known that there are a multitude of untrustworthy offers circulating in the music market. So why do so many artists still fall for them anyway? Its a mixture between a lack of knowledge, the belief in shortcuts, and scammers slick exploitation of the artists pressure points.

    The streaming era has ushered in entirely new possibilities for fraud. In many other posts we have already reported on why fake streams are damaging more than anything and how you can spot suspicious offers and playlists. But why do artists, whether unknowingly or on purpose, still make use of these music promotion offers?

    How Much Do Artists Earn Per Stream

    It can be a bit difficult to answer how much an artist will make per stream due to the multitude of factors involved such as the pay-per-stream rate which can vary between countries.

    Furthermore, most platforms dont specifically announce how much they pay to rights holders per stream. How annoying! To further complicate matters, there are different breakdowns for artists signed with indie labels, self-releasing artists, and artists affiliated with a major label.

    However, weve done our research and have found the closest estimates possible for some of the most popular streaming platforms out there. Weve also created our very own music streaming royalty calculator to help you calculate streaming royalties of your own.

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    Apple Has Sent Out An Open Letter To Artists Detail How Royalties Are Paid On Its Streaming Service

    Apple has revealed for the first time how much artists are paid on its Apple Music streaming service. Apple revealed this through an open letter sent to artists which is said to be part of a new series to keep artists informed about royalties. This was first reported by the Wall Street Journal, and the full letter has been published by 9to5Mac.

    Apple in its letter said that it pays artists an average of $0.01 per stream. The company also highlighted that it pays the same 52% headline rate to all labels as opposed to some services which pay a substantially lower rate to independent labels. The same headline rate is also paid to every publisher and licensor in all countries.

    Apple hasnt detailed though exactly how much artists are paid as this can vary in different markets. The rate will differ based on the subscription plan in each country. For example, Apple Music costs 99 per month in India. In the US, the monthly plan is $9.99 which is 744.66 through direct conversion. Apple also has cheaper plans for students, and family members. It also offers an Apple Music subscription bundled with Apple One which drastically reduces the price one would pay monthly.

    What Are Streaming Royalties

    UK investigating whether Apple Music, Spotify, and others ...

    Streaming royalties are the fees paid to rights holders every time a song is played on music streaming services such as Spotify, YouTube, and Apple Music. These fees are a vital source of income for songwriters and artists. However, its not as simple as it sounds

    Lets start right at the beginning with some music publishing basics. When a song is written, its writer holds the copyright to that song. That song can then either be recorded and performed by the writer or given to another artist / band for them to record and perform. No matter the outcome, the songwriter always holds the publishing rights, while the recording artist will hold the master rights.;If the songwriter / artist gets signed to a publisher and/or a record label, these might also be considered as rights holders as well.

    Once the song is recorded and uploaded to streaming platforms such as Spotify and Apple Music, fans are able to stream and listen to that song at their own leisure. The songwriter is then paid a fee via collecting societies such as a Performance Rights Organization and a Mechanical Rights Organization . Instead, the recording artist is paid via record label or distributor.

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    High Barriers For Buyers And Artists

    Hardly a day goes by without news of million-dollar sales or superstars launching their own NFTs. But is art really whats on the forefront here or is it all just about the collectors value and thus also the speculation? Are NFTs truly valuable or does their value only come from people thinking theyre valuable, at least at the moment? Whats growing here a bubble that will soon burst or a genuine, sustainable source of income for musicians?

    Lets first get to the main stumbling blocks: For anyone who hasnt been dealing with cryptocurrencies for a long time, its not that easy to set up and sell NFTs. So, theres a risk that artists are getting into some technology that they dont completely understand. Even more problematic, however, are the challenges for the buyers. Few people have Ether in their crypto wallet and are hanging out in NFT marketplaces. Do you know someone who owns NFTs? Exactly. It will take years before they can truly establish themselves within the greater population.

    Country/territory Of The Listener

    Spotify and Apple Music pay more for a stream from a listener in the US than a stream from a listener in India. Why? Simply because the cost of a standard premium subscription in the US is about $10. In India its under $2.00. Not to mention the free, family and discount plans.

    For the ad-supported free plan on Spotify advertisers pay more for US Spotify placement than they do for India Spotify placement, so the pay split for ad-supported streams will also be much less.

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    How Do Royalties Work

    Royalties are fairly simple. Although there are many types of royalties , the music industry pays recording artists small amounts of money per stream for a sound recording. Streaming services pay artists based on the number of times a sound recording is played after taking a small fee for hosting it on the platform.

    In most cases, a record label or music publisher will take a fixed percentage of a musicians royalties on top of the income taken from the music streaming service.

    Apple Published An Open Letter To The Platform’s Artist Dashboard That Revealed The Payment Structure For Artists How Much Does Apple Music Pay Per Stream

    Apple Music Payouts Compared to Spotify

    How much does Apple Music pay per stream?

    With the innovation of music streaming platforms, music discovery has become easy. As a result, many budding artists who previously experienced difficulty;finding an audience are now being approached by them;without batting an eye. Though artists have expressed their gratitude towards this, they have also pointed out the excruciatingly low-priced pay per stream benefits. No viable solutions;have been provided by leading platforms like Apple Music or Spotify yet. Until then, fans of the artists are advised to make themselves aware of the pay per stream system so that they can come to the aid of the artists from time to time. How much does Apple music pay per stream and how can fans help with it? Let’s find out.

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    This Is A Work In Progress And These Graphs Will Be Updated In Real

    To the distributors reading this, if you feel that the numbers below are different than what you see, feel free to put is in touch with your artists so we can take a look at their reports

    **Not much data yet for Spotify India. CD Baby recently changed their pay rate for Spotify India so we only have a couple months of data to work off of here .

    The number of India smartphone users is over 760 million . Expect streaming growth to explode in India in 2021.

    If you would like to see your distributor added or would like us to crunch YOUR numbers and let you know how you stack up, submit your reports here and well get back to you.

    Supposedly Every Merlin Deal Will Result In The Same Pay

    But just being part of the Merlin network does not mean that the distributor has to opt-in for every deal. Which is why some distributors have higher pay rates than others who are also part of Merlin.

    Worth noting, no distributor paid out more than $.004/per stream for Spotify US in 2020

    Note thats Spotify US not Spotify across the board.

    We didnt calculate Spotifys average per-stream rate across all territories because it would be heavily weighted on the location of the artists lister base. If an artist got included in a country-specific playlist, like Top Brazil and 90% of their streams came from Brazil, their numbers would look awfully different than someone whose streams come primarily from the US or India. Because streams are not evenly distributed amongst every territory, you have to split up calculations by country.

    So, we did.

    Read Also: Repeat On Apple Music

    No Nfts Without Cryptocurrency

    In order to set up or buy an NFT, you have to have a crypto wallet meaning a place to save your cryptocurrency. After that you will need to buy some Ether and put it in your wallet. A large number of NFTs are sold in Ethers and stored on the corresponding Ethereum blockchain. Finally, you will have to register at one of the market places for NFTs and connect it with your wallet.

    You need NFTs not only as a buyer but also as a seller, since you have to pay a so-called gas fee to mint an NFT.

    Why More And More Artists Are Taking The Independent Route

    How much do streaming services really pay artists ...

    More and more artists are celebrating major successes without major labels, and many are now seen leaving big record companies. Well show you what advantages come with being an independent artist.

    Major labels are still a big force, no question about it. Last year, the music industry made a profit of 23.1 billion dollars worldwide, 65.5% percent of which went to major labels. However, this share has been steadily declining; back in 2019, it was 66.5%. A similar situation can be observed at Spotify, where the portion of stream revenues that went to major labels dropped from 70.3% to 68.9% between 2019 and 2020. And yet, major labels continue to enjoy an abundance of power and, above all, financial resources.

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    Using This Data Weve Created A Music Streaming Royalties Calculator

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    Just choose a music platform, enter your predicted streams and check out the estimated royalties total in US dollars.

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    IMPORTANT: THE ESTIMATED ROYALTIES PREDICTED BY THIS CALCULATOR WILL NOT BE 100% ACCURATE. IT IS BASED ON FIGURES FROM THE USA, SO ACTUAL PAYOUTS WILL VARY, PARTICULARLY FROM STREAMS GENERATED IN OTHER COUNTRIES. MANY FACTORS AFFECT STREAMING ROYALTIES AND THIS SHOULD ONLY BE USED AS A GUIDE.

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    Of course, the royalty figure you get here wonât be an exact match to your real-life royalty statements due to the unpredictable nature of streaming payouts. But it does offer a nice ball-park figure to help you understand how much your streams are generally worth.

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    If youâre interested, here are the estimated âper-streamâ figures our calculator is based on.

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    Weâd love to know! Let us know in the comments and below and share this with your fellow musicians.

    Other Interesting Take Aways:

    • Spotify is paying a higher rate across the board for streams from Great Britain than the US
    • Tunecore pays the most for Spotify US and the least for Spotify Great Britain
    • DistroKid pays $.00444 for Spotify Great Britain and $.00338 for Spotify US
    • Even though AWAL takes 15% commission, they still pay the most for Spotify Great Britain , but among the lowest for Apple Music US .
    • Horus pays the most for Apple Music and Spotify Brazil as well as Apple Music US.
    • Apple Music Great Britain sits right around 1 cent per stream for most distributors
    • CD Baby changed their Spotify pay rate in mid 2020 . More on what happened here.
    • Apple Music Brazil pays better than Spotify US

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    Pps Increased In Majority

    The good news is that the PPS in many countries has increased since our last assessment. The bad news is that it has mostly decreased in countries where it was already low before. This primarily affects countries in Asia, Africa, and Latin America. But in most European and North American countries, the PPS is higher now than it was during our last analysis.

    The average across all countries has slightly decreased, but this is mainly due to the fact that Spotify is now available in various new states, most of which have low subscription fees , and thus also a low PPS. If we assume that you had an equal number of streams in each of the analyzed countries, then you would receive 2,354.56 USD for one million streams. In our last assessment, this average figure was at 2,389.58

    In addition, we did not include some countries in which Spotify is also available because we did not have enough data. In total, we analyzed the data from 94 countries, with the addition of various Eastern European countries.

    This Value Varies By Subscription Plan And Country

    How Much Apple Music Paid Me? (Independent Artist)

    Apple pays an average of $0.01 per stream, Apple Music said in a letter to artists, as per reports.

    As per the letter reviewed by Wall Street Journal and published in full by 9to5Mac, Apple Music said, While royalties from streaming services are calculated on a stream share basis, a play still has a value. This value varies by subscription plan and country but averaged $0.01 for Apple Music individual paid plans in 2020. This includes label and publisher royalties.

    The tech giant further said that it pays 52 per cent of subscription revenue as the headline rate. It has the same headline rate for every publisher and licensor within each country as opposed to some other services that pay a substantially lower rate to independent labels.

    However, it did not provide details as to how it translates across its family plans and lower subscription rates in other markets, as noted by the 9to5Mac report.

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    Deezer Falls To Fourth Place

    Launching several years ago in the US, French-based streaming music service Deezer;still;doesnt have an established presence in the country.

    Back in 2018, at $0.0056, the service topped GPM in terms of payouts. By 2019, Deezer paid $0.00624. That number has slowly risen to $0.0064, placing it right behind GPM. Artists will need 230,000 total plays to earn the US monthly minimum wage amount.

    Deezer recently reported an annual loss of $27 million, losing $1.69 per user. Deezer reportedly has 16 million users, with around 9.12 million or 57% paying for the service.

    South Korea And Uk Are The Frontrunners

    The clear frontrunner is South Korea with a PPS three times as high as that of the UK sitting second place. The reason for this is that there is no free option for Spotify in Korea, only premium subscriptions. Thus, it becomes clear what immense influence the free tier has on the PPS and also why Apple Music, for instance, pays so much more per stream than Spotify does. Other than the UK, the top ranks are exclusively made up of European countries, primarily from Northern Europe, as well as Switzerland, Ireland, and the microstates Monaco and Liechtenstein.

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    How Much Does Apple Music Pay Per Stream According To Apple Apple Music Streaming Royalties Are Nearly Triple What Spotify Pays Artists And Likely A Lot More

    So, how much does Apple Music pay per stream? Now have a decisive answer: one penny per stream. Apple Music recently sent a letter to artists, labels, publishers, and other stakeholders confirming the amount. The disclosure was uploaded today via the artists dashboard in Apple Music and was also delivered to partner labels and publishers. Its a more transparent look at music streaming royalties between the two behemoths in the space.

    Just last month, an artist activist group demanded that Spotify pay artists one penny per stream, a request that was flatly dismissed. Indeed, Spotify has actively committed to fighting the penny-per-play push coming from the Union of Musicians and Allied Workers, who organized a protest outside Spotifys offices in New York.

    But instead of dismissing the notion, Apple is now embracing the penny-per-play rate structure and putting it in writing. Apple Musics penny-per-stream royalty rate is roughly double or triple what Spotify pays per-stream, according to stats culled over the years by Digital Music News.

    The protest was in response to Spotifys Loud and Clearwebsite, which the company claims brings transparency to its royalty structure. But as the UMAW points out, the website doesnt address Spotifys multiple sources of income from subscriptions, ads, payola schemes for playlist promotion and algorithm prioritization, or any other income streams.

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