We know that music streaming has taken off in a big way. But if you are a music company or an artist, how do music streaming payment rates differ by platform? The answer is they differ a lot. To see who pays most and least, read on.

In fact, we have come a long way since these earlier posts:


Music Streaming Payment Rates Differ by Platform

As Patrick Wagner writes for Statista:

“Following the emergence of CD bootlegs and illegal downloads, the traditional business for music labels and publishers collapsed in the early years of this century. The compact disc served its time and declined. And music downloads weren’t big enough yet to compensate for the losses. The music industry needed new solutions. Thus, it struggled to develop effective distribution channels in the digital age.”

“In recent years, on-demand streaming emerged as a possible solution for the industry’s pains. After years of decline, the music industry has now returned to growth. Despite the growth of revenue, there have been downsides. For example, streaming services such as Spotify have been criticized for not paying artists adequately.”

“The following chart by Statista shows that a single stream is in fact of little value. However, there is a substantial difference between the many services competing for the listeners’ money. Whilst Spotify is constantly keen on cutting royalties, providers like Tidal or Apple Music offer substantially higher per-stream rates for artists.”

In viewing the chart, take the perspective of a music company or an artist. (1) What conclusions do you reach? (2) How would you act next?


Music Streaming Payment Rates Differ by Platform

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