Being famous doesn’t pay what it used to.
Ever since streaming became the norm, payouts have been a huge issue. However, it’s looking like things are getting worse for artists.
The average money they make from streaming keeps dropping annually. They went from $4.04 per 1,000 streams in 2021 to $3.69 in 2022, then down to $3.46 in 2023. Now, they’re just averaging $3.41 per 1,000 streams.
How Much Each Platform Pays
Duetti’s latest analysis looked at eight major platforms: Spotify, Apple Music, YouTube, Amazon Music, TIDAL, Deezer, Pandora and TikTok.
Based on this, Amazon Music sits at the top of the chart, paying artists $8.80 per 1,000 streams.
The reason? Their services come bundled with Prime memberships, which helps boost their payout rates.
Right behind them is TIDAL at $6.80, while Apple Music takes third place with $6.20 per 1,000 streams.
According to Duetti, Apple Music’s stronger numbers come from their presence in higher-price markets and their choice not to offer free, ad-supported options.
Then comes YouTube (including YouTube Music), which now pays $4.80 per 1,000 streams.
They’re getting these better rates thanks to more people signing up for subscriptions instead of just watching ads. And, while YouTube’s share of the streaming pie is growing, Spotify’s slice has actually shrunk by 2%.
That could be a good thing, however, as Spotify actually pays the second-lowest rate at $3.00 per 1,000 streams. They come just above TikTok, which pays around $0.5 per 1,000 videos created (not streams).
Why Spotify’s Payouts Keep Dropping
You’d think raising subscription prices would mean artists get paid more, right? Well, not with Spotify.
Their payout rates keep sliding down, from $4.08 per 1,000 streams in 2021 to $3.87 in 2022, then $3.59 in 2023, and now $3.51 in 2024. This is happening even though they bumped up their U.S. subscription price from $9.99 to $11.99 between 2021 and 2024.
All the listed reasons aren’t new. However, the report suggests that a huge chunk of it is because of the Discovery Mode.
Unfortunately, more and more independent artists are jumping on board with this program. It started with just 6% of streams in 2021, dropped to 5% in 2022, then shot up to 13% in 2023, and now covers 26% of streams in 2024.
But Spotify isn’t happy with these findings.
“These claims are ridiculous and unfounded,” a Spotify spokesperson says.
“No streaming service pays per stream because that approach would incentivize streaming services to minimize streams. We are proud to be the leader in total payouts, but that doesn’t happen by accident; it’s by design.”
How Niche Music Earns More
Here’s some good news for artists making less mainstream music: niche genres are earning about 8% more per stream than the mainstream in 2024.
When comparing genres like Goth Punk and Phonk to mainstream hits in Pop, Hip-Hop, and Rap, some niche genres are doing even better as they pull in up to 30 cents more per 1,000 streams.
So why are these smaller genres making more money?
It turns out their fans are more likely to pay for premium streaming subscriptions instead of using free tiers.
Plus, these artists typically skip Spotify’s Discovery Mode program, so they’re not trading lower royalties for more exposure.
On the flip side, the success of niche genres tells a very different story from viral hits.
While TikTok claims that 84% of songs on the Billboard Global 200 in 2024 started as viral hits on their platform, going viral doesn’t usually lead to long-term streaming success.
Only 15% of songs that blow up on TikTok keep bringing in higher streams on major platforms.
Boa noite, então eu tenho interesse que me ajudem que tenho 12 músicas no spotif…