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
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.
Northern European Countries On Top
The decidedly biggest payout can be observed in Norway. The other Scandinavian countries, too, are among the top 10 along with the Netherlands, Ireland, the UK and Switzerland. While a majority of Central European countries can be found at the top also, the other end of the list is made up of African, Asian, and Eastern European countries, as well as a few Latin American countries. The US and notably Canada only fall into the midrange.
How Much Does Spotify Pay Per Stream
Its estimated the per stream rate for Spotify is $0.00318. However, Spotify doesnt technically pay artists one standard per stream rate.
Spotify pools its revenue from memberships and advertising, takes a percentage for themselves, and then divides the rest by the number of plays it has received that month.
Spotify then multiplies this by the amount of streams youve received.
This is a simplification of the whole overall process. Things can get confusing when you start to factor in the different values put on paid / free streams.
We havent included YouTube in our streaming royalty calculator, as the payment structure is too complex to create a realistic estimate per stream. This is something we will be looking to include in future so be sure to bookmark this tool for future use.
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Calculate Your Total Music Streaming Revenue
This music streaming royalty calculator below for Spotify, Apple Music, Tidal, Google Play, Deezer, Amazon Music, Pandora, Napster, YouTube Music and Soundcloud is brought to you by DailyRapFacts. Our music Streaming Royalty Calculator will show you how much you would make on streaming platforms.
Note: Our music streaming calculator is only an estimation. Music streaming platforms like Spotify, Apple Music, Deezer, Tidal, Google play and Amazon dont have a fixed pay-per-stream rate. There are many factors that plays into how much royalties these services pay musicians like if the listener has a paid or free account, listeners country, region and location, and more.
Apple Music Takes Third Place
How much does Apple Music pay per stream? Historically, Apple Music has paid artists much better than its streaming music rival, Spotify.
Back 2017, the service paid $0.0064 per stream. By last year, that number had risen to $0.00783. Now, Apple Music has upped its rate further: in April of 2021, the platform announced that its artists would receive a royalty rate of 1 cent per stream.
Artists on Apple Music would need around 147,200 plays to earn the US monthly minimum wage amount.
With Apple closely guarding its user metrics, it remains unclear how much Apple Music loses each year on the service as well as per user.
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How Much Does Apple Pay Artists
In the letter to artists and labels, Apple told artists that it pays them 1 penny for each stream. So if you’re obsessed with your favorite song, you’d have to play it 100 times for the artist and label to make $1.
And while that doesn’t sound great, that’s actually about double what Spotify pays per stream, so it’s actually a pretty good deal, at least when compared to the competition. Spotify pays an average of about one-third to one-half penny per stream. However, the key difference is that Spotify has a much larger user base, so while each stream pays less, Spotify tends to generate far more streams.
In the letter, Apple said, “As the discussion about streaming royalties continues, we believe it is important to share our values. We believe in paying every creator the same rate, that a play has a value, and that creators should never have to pay for featuring.”
As far as how much Apple makes, the company said that it pays 52 percent of subscription revenue to labels and artists. That means Apple is making 48 cents on the dollar.
Apple Music Reveals How Much It Pays Artists Per Stream
How much do artists make while you rock out to their songs? Apple revealed the answer.
The rise of streaming has changed the music industry. Instead of record labels and artists making larger sums of money when people buy their new album, they make pennies when people stream a song.
The argument comes down to whether streaming actually works out better for the music industry in the long run. It’s obviously better for consumers, but if labels and artists aren’t making any money, there won’t be an industry to create music.
More often than not, we don’t actually hear about how much services like Apple Music and Spotify pay artists. It’s like some big secret happening around us. We know our plays are paying the artists and labels, but how much is a mystery.
Apple has revealed a bit about how much it pays artists in a letter discovered by The Wall Street Journal.
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How Do Streaming Platforms Pay Artists
Streaming platforms pay artists royalties for songs that are streamed or downloaded. In most cases, the money is directly deposited into an artists bank account every month or quarter.
Although it is becoming increasingly rare, some royalties are still paid with a physical check that is mailed to artists. More often than not, low-income checks from low volume streams are more of a novelty for smaller musicians rather than a serious paycheck.
Shortcuts Lead To A Dead End
As an artist, you want as big of a reach as possible and a solid fanbase preferably now. But a music career is a marathon, not a sprint. There are hardly any artists who became stars completely out of nowhere. Just because youve never heard of an artist before, that doesnt mean that they havent worked for years to get to this point. Patience is not only a virtue but a must. There are so few shortcuts in the music industry that dont lead you down a dead-end road.
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Apple Music In Contrast With Rival Spotify Says It Pays A Penny
Apple Music has issued a memo to artists, labels, and other rights-holders regarding its royalty rates and practices, in which the streaming service touts that it pays out one cent per stream on average, as The Wall Street Journal reports and Pitchfork can confirm.
While royalties from streaming services are calculated on a stream share basis, a play still has a value, reads the memo, viewed by Pitchfork. 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.
Much of the memo seems to be indirectly aimed at primary competitor Spotify. At one point, Apple asserts its commitment to paying the same 52% headline rate to all labels. While other services pay some independent labels a substantially lower rate than they pay major labels, we pay the same headline rate to all labels, the memo reads. This means artists can distribute music however they like, knowing Apple Music will pay the same rate. Sign with a label or stay independent we believe in the value of all music.
The memo seems to refer to Spotifys Discovery Mode, which gives artists the opportunity to opt into a promotional, lower royalty rate in exchange for a boost in personalized algorithmic playlisting.
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.
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What Constitutes A Stream In Music
Streaming is one of the most popular ways to listen to music today. A stream is completed when a song is played through an online platform, rather than on an individual listening device.
Streaming has grown in popularity as it does not require users to download the media they want to enjoy, which saves storage space on computers and mobile devices. Streaming is also popular in video services like YouTube and Netflix.
Are Nfts Changing The Music Industry
Non-Fungible Tokens, short NFT, seem to be all anyone ever talks about at the moment from the art scene to the music industry. iGroove Magazine has closely monitored this trend, but wanted to observe its development first instead of jumping on the bandwagon right away. Since the hype seems to persist, we show you in this posts what NFTs mean to musicians. We will start off by explaining the basics. But if you already have a good grasp on the subject, you can just skip the first part and continue reading below.
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Spotify Vs Apple Music
On average, Apple Music pays 2.63 times as much as Spotify. In our last assessment, it was 2.84 times as much. In most countries, we observe a factor ranging between 1.5 and 2.5. In various Balkan states and in Jordan, it can even be between 6.34 and 10.43 . In the English-speaking countries, the factor is always below average and ranges from 1.54 and 2.29 .
Is Monthly Subscription The Only Option In Apple Music
Of course no. Apple Music offers you two types of subscription: monthly and annual.
An annual subscription costs $99. By choosing an annual subscription youll save about $20 a year. But its not that easy to get this annual subscription
This is not surprisingApple wants us to pay more. But weve found a way to change your subscription plan.
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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.
How Much Do Music Streaming Services Pay Musicians
Music streaming services like Spotify, Apple Music, Deezer, Tidal and Amazon donât have a fixed âpay-per-streamâ rate when it comes to paying out music royalties to artists.
There are lots of factors that affect how much money one stream is worth in royalties. The main factors include:
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This makes things complicated when trying to predict what you’ll earn in streaming royalties. It’s just about impossible to accurately calculate exactly how much youâll make from a certain number of streams, as all these factors need to be into account.
This study based on information collected from real musicians and third-party websites provides a general look at the estimated royalties currently being paid out to artists in the USA by the worldâs biggest music streaming platforms.
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How Streaming Services Determine Royalty Pay For Each Artist
Streaming services cut massive checks to hitmakers like Billie Eilish, Taylor Swift, Post Malone, and other frequent chart-toppers each month, but some smaller artists like Keating feel the payment system isnt fair to them.
Most streaming services pay artists using a system known as pro rata, in which all the money generated from listeners each month is totaled up, then divided proportionally by listening time in order to determine how much each artist on the service should be paid.
If youre a popular artist, youre likely going to get more streams just by virtue of the fact that youre popular, said George Howard, a professor of music business at the Berklee College of Music.
In a video Spotify posted to a page of resources for artists, Alan Galbraith of the companys licensing department says stream share determines each artists cut of Spotifys monthly revenue.
One way to think about it is to think about divvying up a pie, Galbraith says in the video. For instance, if there are a million eligible streams in a month, and you have 100,000 streams in that month, then your stream share is 10% of the revenue pool, or pie.
In other words, if Billie Eilish accounts for 10% of all streams this month, then Eilish gets 10% of the money users paid to Spotify, regardless of which users actually streamed her songs.
But some in the industry prefer a different type of payment system.
What Is An Album Equivalent Unit
Before streaming services, album sales were used to measure the popularity of a musicians work. In the 2010s, the Album Equivalent Unit was introduced to help quantify the success of a music release.
To put it simply, 1 album sale is equivalent to 10 song downloads or 1500 streams according to the Recording Industry Association of America. With this in mind, it is easier to label an artists work if they reach a platinum or gold level of equivalent albums sold.
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Subscription Plans And Cost
For instance, the subscription cost for Apple Music in India is 99 per month, significantly lower than in the US. Furthermore, Apple also offers Apple Music bundled with Apple One and also has cheaper plans for students, and family members.
It said in the letter that its average per play rate is $0.01.
It further said that royalties were paid out for over 5 million recording artists worldwide in 2020. The number of recording artists generating more than $50,000 per year has more than doubled.
In comparison, as per the WSJ report, Spotify pays nearly one-third to a one-half penny per stream on average. However, it has a larger user base which leads to more streams.
Apple had over 60 million Music subscribers as reported in June 2019, as per the report. While the total MAUs on Spotify grew 27 per cent Year over Year to 345 million in Q4 2020.
Apple Music To Artists: We Pay 1 Penny Per Stream Double What Spotify Pays
The tech giant makes the case to recording artists that its more artist-friendly than its chief rival
Apple Music on Friday, in a letter to recording artists reviewed by the Wall Street Journal, said it pays artists one penny per stream. The revelation could be interpreted as a not-so-subtle hint to artists that Apple Music is more creator-friendly than Spotify, its chief rival. Spotify, as the Journal points out, pays about one-third to one-half a penny per stream on average.
Apples letter also comes as artists, managers and fans have pushed for better payouts from streaming services, especially after the pandemic wiped out a year of touring revenue.
As the discussion about streaming royalties continues, we believe it is important to share our values, Apple said in its letter, per WSJ. We believe in paying every creator the same rate, that a play has a value, and that creators should never have to pay for featuring their music on Apple Music.
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Pps Twice As High As Spotifys
Assuming you had the same number of streams in each of the 66 countries we assessed, you would receive $4,776 per one million streams. Even though Deezer offers add-supported subscriptions, as well, their PPS is about twice as high as Spotifys and only around 25% lower than Apple Musics. We will compare these three streaming services in more detail in an upcoming post.