We wouldn’t have been able to achieve this without the great Spotify API and the amazing github project of evilarceus. Formerly curated by ex-MTV Tuma Basa, the playlist has over 12.8 million followers, and has even spawned a series of arena tours headlines by members of the hip-hop aristocracy such as Migos and Chance the Rapper. The streaming giant generates revenue in two main ways; Firstly, if users want to listen to tunes on the platform for free, then they have to listen to advertisements while using the service. In the top-10, we again see the aforementioned hegemony of a select few artists, with Ed Sheeran represented three times, and Drake and Post Malone twice. One of Spotify’s most-loved features is the user-specific playlists generated at first weekly and now daily for each listener, based on their listening history. 1  +   =  8 .hide-if-no-js { Note that we’ve converted Spotify ARPU from euros into dollars for the entire period at April 2020 exchange rates. We might put this down to Apple’s relative strength in the lucrative US market, compared to Spotify’s more diverse userbase. Spotify is the world’s biggest music streaming platform by number of subscribers. If we separate the results into male and female listeners, we see that female listeners tend to remain closer to the mainstream overall, and hit peak divergence a little older – at 42, with a few more lurches in and out. Spotify hat sämtliche Musik, die Du je brauchen wirst. Back in December 2019, for instance, you may have read our report on cellist Zoe Keating’s receiving a $753 check from Spotify, as compensation for 206,011 streams. Greer’s Spotify petition comes as digital streaming, purchasing and merchandising platform Bandcamp has announced it will waive its revenue share for 24 hours on sales from midnight PST on 20 March. These scores are reflective of the far higher level of comfort with streaming among younger users. Streaming-Musikportale wie Spotify, Deezer oder Apple Music bieten ihren Nutzern unbegrenzten Zugriff auf sehr große Musiksammlungen. Google Play Music, which it describes as nearly defunct, came in second with 60, and Pandora third on 55. Other artists’ Spotify payment data has shown that the per-stream … It does not have the run of the market, however. The following graphic shows where and when Americans were listening to Bonnie Tyler’s karaoke favourite “Total Eclipse of the Heart” during the solar eclipse of August 2017. Notably, a handful of prescient key staff members had jumped ship from the public station to Spotify in the years preceding the coming into being of this new paradigm. While physical media might be being outpaced by streaming, another industry that is increasingly finding its consumer base eroded by Spotify is commercial radio. It’s like divvying up a pie. Netflix, on 24.9%, is also marginally ahead in penetration terms. This culminated in a low of $106.84 in December 2019. A Disaster.’, despite rising subscriber counts and revenue, Move Over, Twitch — Musicians Can Now Charge for Facebook Live Events, LiveXLive Issues Cease-and-Desist Against Billboard for ‘Harassment,’ ‘Defamation,’ ‘Tortious Interference’, Spotify Patents ‘Spoken Words Analyzer’ Technology to Analyze Song Lyrics With AI, Spotify Stock (SPOT) Hits an All-Time High of $330 — Up 118% In 2020, Spotify CFO Says Universal Music Is “Willing to Lean In More Aggressively”, Spotify Drops $235 Million to Acquire Podcast Platform Megaphone. Spotify pays artists approximately $0.0032 per stream, which equates to approximately 1 cent per 3 plays. Now That the Music Modernization Act Has Passed, Who’s Gonna Run the Damn Thing? Unsere Fans fühlen mit Spotify. If Spotify is the largest streaming platform of them all, how much do you earn from Spotify streams? Spotify generates most revenue by selling ad-free music- and podcast-streaming services, but also sells ad space on its non-premium streaming service. Marketplace | News & Insights | Data | Events. Some artists have tailored their promotional strategies in response to this point, including by seeking higher-royalty streams and, inversely, using Spotify to market themselves in regions with less competition for their style of music. A more recent (2019) SoundCharts study looking at the average royalty payouts per stream reports that artists earn the considerably lower sum of $0.00318/stream on Spotify. It won’t be news to those who follow the music business that streaming has come to be the dominant medium through which music is consumed – overtaking physical records as a revenue source for the music industry in April 2018. It’s not just the festive season that gets listeners looking for class soundtrack. 2018 was a relatively poor year for Sheeran, who only managed to be the fifth most streamed artist. Spotify data showed that between 2014 and 2017, the average listener increased the number of unique artists to whom they listened by 37% from 30 to 41 per week. This gives us a Spotify market cap of $26.87 billion. This is a high figure, though not inconceivable given music can be streamed in the background of other activities. The hegemony was finally broken in 2019, with Post Malone taking the honours, with 6.5 billion global streams. It is not unusual for Q1 to be a weaker quarter for app revenue than the preceding Q4 so we can’t read too much into that small decline. Coronavirus may put paid to this upward curve (unless it drives new users to streaming services in lieu of missed concerts), but it is to these strong figures the industry will hope to return. The top-10 most-streamed songs of all time, as of late April 2020, unsurprisingly closely resembles the top songs of the 2010s. Europe’s proportion of total MAUs has fallen slightly, from close to 40% to 35%. Looks Like Apple Music Is Coming to Tesla Soon, Michael Jackson’s Neverland Ranch Sells for $22 Million — 78% Lower Than Original Listing Price, Cardi B Wins $30 Million Lawsuit Against Former Manager, Tekashi 6ix9ine Still Hasn’t Responded to a $5.3 Million Canceled Concert Lawsuit, 29-Year-Old AEG Executive Connected to Nashville Bomber — Here’s What We Know, What Streaming Music Services Pay (Updated for 2020), Is Your Song Being Played on the Radio? In May of this year, you might have seen classical violinist Tasmin Little’s shocking description of her Spotify income. The most-played song by some distance, Sheeran’s “Shape of You” (2.48 billion streams, nearly 600 million streams ahead of any other track), was only released in January 2017. Spotify also says its Streaming Ad Insertion technology will also become more broadly available to U.S. advertisers this summer and announced a … There are no official payout rates so we have researched various sources and have come up with a good general estimate per stream. Physical or Downloaded sales pay a fixed price per song or album but Spotify pays artists based on their “market share” i.e. Apple are not a company anyone would want as a competitor. Before, we would pay for each individual film or album (or even song), which would then be in our possession for as long as we took care of it. Percentage of time spent listening to Spotify playlists. While it would be convenient to give you a single, definitive Spotify royalty rate, the unfortunate reality is that no such figure exists. The Swedish company doesn’t make public its streaming revenue nor how many streams it generates per year but The Trichordist has enjoyed access to a mid-sized indie label’s streaming service figures since 2014. Yorke poetically called Spotify “the last desperate fart of a dying corpse”, and criticised its role as tastemaker, saying that it worked against smaller artists seeking a breakthrough. It was, however, on “Baila Reggaeton”, with a little under 10 million followers, that you would have found a certain “Despacito” featuring on the very first day of its release, as well as J. Balvin’s huge hit “Mi Gente”. Artists, of course, are more than aware of this; accordingly, Spotify’s vice president of content reports receiving thousands of emails a day from artists looking to be included on one of Spotify’s influential playlists – indeed, artists have even began to email his children asking them to petition their father to include them on one of these playlists. It took eight years of Spotify for one track to reach 1 billion streams, and 10 years for 10 songs to reach this threshold. Spotify’s 2019 subscription revenue comes to €6.1 billion – or $6.61 billion. 2019 marked the last year of the second decade of the 21st century, thus Spotify revealed some stats about markers for the decade. A PC Mag survey (end of year 2019) gave Spotify a Net Promoter Score (NPS) of 66. That model would probably seem hopelessly antiquated to anyone coming of age in the third decade of the 21st century. Over 85% of music streamed from Spotify belongs to four record labels: Sony, Universal, Warner, and Merlin (Merlin is actually a licensing agency for independent labels). In financial terms this is worth $116,000-$163,000 to an artist. As of September 2018, however, Spotify offers a service to artists who want to directly upload music to Spotify. In early 2016, it was widely reported that the average Spotify listened to 148 minutes of music per day. IFPI figures do not break out figures by platform, but we can make our own calculations based on what we know. While the ensuing discussion on Twitter may have been making Spotify execs’ ears burn, we’re looking forward to Keating’s fuller data-drop in December, which will make it clear how those Spotify earnings sit within (and have an impact on) her other revenue streams, like Bandcamp. However, this exact number varies depending on several variables, such as whether or not the listener is a paid subscriber, or which country the song is played in. The younger demographic consistently more generally gave higher scores across platforms, apart from Pandora, which seems to score very well with over-30s. The idea that something as highly-valued as pop music is in the hands of a global tech juggernaut concerned mostly with its own bottom line is problematic for aficionados as well as artists – particularly when it is also the main distribution channel. That Spotify has tried to reduce the amount it pays out to labels in order to ensure its own survival and will reassure few artists. Spotify can be considered, along with Netflix, to be one of the key drivers of a sea change in the way we consume culture. The 2017 increases in artists listened to seems to chime with an increase in the number of hours spent listening to Spotify, which increased 25% over the same period. Streaming Royalty Calculator is a tool which helps estimate your payout per stream. By the end of the year, Spotify is hoping to report 328-348 million MAU, and 143-153 Premium subscribers. Spotify most-played lists tend to be dominated by the same handful of artists. That said, you’ll likely be interested to know about the royalties’ possible long-term trends. Spotify also reported that Toto’s “Africa” was the top ‘throwback’ song of 2018 – as anyone who has been anywhere near the internet in the past five year will be able to tell you. Streaming is already the savior of the music labels as the only major source of recorded music revenue that's growing, and Spotify is the single largest contributor to that by far. Spotify also edges out every channel but Pandora and Amazon Music (only by 1% in the latter) in the over-30s category. In December 2013, the company launched a new website, "Spotify for Artists", that explained its business model and revenue data. Further breaking down US Spotify users by age, we see, as with so many apps, that younger demographics dominate. Further complicating matters, the vast majority of musicians opt not to share their Spotify income specifics. German-language chatshow podcast Fest und Flauschig topped the podcast charts, while crime & mystery was podcast listeners’ favourite genre. Advertisers pay Spotify to use the platform to showcase their product, which in turn funds the royalties the company pays artists. This is very much the nexus of user engagement for Spotify. eMarketer predicts US Amazon Music listeners will increase to 43.3 million over 2020. Indeed, it is only track to feature released prior to 2011. Pandora is slightly behind on 16.9%, while Google Play Music on 11.7% and Amazon Music on 8.8% are further back still. It is predicted it will grow to 37.1 million over 2020. A free tier supported by advertising 2. Ajay Kalia, Spotify’s product owner for taste profiles conducted research in 2015 on how listeners’ tastes change as they age. Over 16% of Spotify MAUs engage with podcast content, with over 700,000 titles available. How Spotify Makes Money: Revenue Streams. As of April 2020, 75 songs have been streamed more than a billion times on Spotify, showing a huge acceleration in songs reaching this point. It operates on a freemium model. Followers of content-based playlists are more evenly spread out across the sample. If we’ve seen a change in the course of a few short months, then it is perhaps to be expected that we saw changes over the two years since the 2018 decade of Spotify list. Its rivals include Deezer, Pandora, and most ominously Apple Music, which is aggressively seeking to gain market share. The music streaming company forecast a soft current quarter, due mainly to a decline in ads … Other more recent features we might consider after this point is the annual ‘Your Top Songs’, customised to each user based on their year’s listening. This could be ascribed to a number of factors, though we might speculate algorithmic and playlisting trends driving listeners to top tracks have something to do with it. There is a question, though, which separates Netflix and Spotify. If you want to make it in the music industry, you should be able to quantify your growth and success. Interestingly, a surge in US Spotify users is forecast towards the end of the forecast period in 2023. Taking them out of the equation, we see that content-based Spotify playlists boast a higher median follower gain, but a lower mean follower gain than context-based Spotify playlists. The repurchase initiative is set to continue until April 2021. Below is an example of a “taste profile” of Quartz writer Adam Pasick, and an illustrative map showing how these focus areas are generated. Although Spotify operates on revenue shares for each stream rather than a fixed rate, its current payout rate is around $0.0038 per stream — just below four-tenths of a cent. While the subscriptions continue to grow in mature markets, the majority of new subscriptions will come from emerging markets especially Brazil, India, and Russia. So more or less unchanged. Globally, Spotify is available in 79 markets. Inclusion on the “New Music Friday” playlist was also found to substantially increase the likelihood that a song would be successful – even for unknown artists. Spotify revenue came to $7.3 billion in 2019, which would give it a huge 64% share of total streaming revenue, from 36% of total subscriptions. For many years the most-played artist of the year was an arms race between Drake and Ed Sheeran. Spotify is well out in front when it comes to user satisfaction. Going by these trends, we might expect the list in 10 years’ time to look very different to now…. Spotify revenue per subscriber vs. Netflix, Spotify revenue as share of global music industry revenue. Spotify ARPU has been declining – to the chagrin of some invested parties (namely: record labels). Platforms like Spotify … According to Verto Analytics/Statista stats, Spotify was the fifth most popular mobile music and video app by reach in the US, as of September 2019, on 23.7%. Some sources indicate that Spotify’s per-stream artist payments could be dropping sharply, and the decline may have started in or before 2013 – a point that could very well affect your future Spotify income. Deezer offers up a more precise 56 million, while Google Play Music is a little way behind, on 40 million. We might note a sharp uptick in both users and subscribers around 2015. Nutzer*innen mobiler Apps fühlen sich mit uns emotional² am meisten verbunden. Let’s not also forget that Spotify saw off the challenge posed by illegal downloading to the music industry. Spotify, which seems to be (or have been in the last three quarters of 2017 by US users), is popular with users of both platforms, scoring behind only the native streaming services and Pandora in either instance. Total streaming revenue rose by 22.9%, with subscription revenue specifically rising by 24.1%. How do they correlate? Spotify stock price has been fairly tumultuous since then, rising to a high of $192.38 in July 2018, but coming down fairly hard from late September onwards. This would have resulted in a more sharply downward trend for Spotify based on exchange rate mechanisms alone. Revenue is the top line item on an income statement from which all costs and expenses are subtracted to arrive at net income. As you’ll see throughout the article, numerous artists have reported receiving different compensation from year to year (we’ll explain why that is below). Confirming what was found above, we see that Spotify has the most youthful user base of the three platforms, with over half of users aged 34 or under, compared with 40% of Apple and 39% of Pandora users. In H2, GlobalWebIndex carried out an analysis of cross-platform listening, which among other things finds the as-yet unmentioned Google Play Music the most popular service. iOS users are more likely to have used Apple Music, while Android users are more likely to have used Google Play Music. Distribution Promotion. Looking back over the decade, other tracks to be the biggest of the respective years were The Killers’ “Human” in 2008. Keating clarified that this is sound-recording royalties paid by her distributor RouteNote, which does not take a cut (it operates on a flat annual-fee basis). Stream share determines your cut of the revenue. It also appealed against a decision from the US Copyright Royalty Board to award songwriters a 44% rate increase by 2022. No repurchase activity took place over Q1 2020. Spotify has published its latest quarterly financial results, covering the final quarter of 2018.. Certainly, grandee artists can get by on the strength of arena performances, licensing, and lucrative deals with record labels – raking in a little bit extra from streaming. Perhaps to ensure that their children will never find them cool…. It would later go on to sell the remaining 25%, bringing the total to $504 million. Number of artists to which average Spotify user listens. Looking at the global picture, Spotify remains comfortably in the lead with 108 million subscribers to Apple Music’s 60 million, as of June 2019. Spotify pays artists approximately $0.0032 per stream, which equates to approximately 1 cent per 3 plays. Spotify AB, which owns the Spotify audio streaming platform, is a publicly traded company listed on the New York Stock Exchange. In May 2018, the Seeb remix of Mike Posner’s “I Took A Pill In Ibiza” became the 10th song to surpass one billion streams of Spotify. Its biggest endeavor so far has been its investments in podcasting. Use our calculation tool to estimate how much you’ll earn from your streams. Student/family subscriptions, for example, see discounted rates being applied. But he adds the caveat: “In actual revenue power, [Spotify] may never get there [to profitability]”. These two services are also the most popular with users of other apps. Spotify pays out according to what they call “stream share”. As such, this is one of the purest middleman-free indications of Spotify economics for an independent musician. Spotify is looking to diversify its revenue beyond subscriptions and ad-supported music streaming. Spotify is a digital music service that gives you access to millions of songs. Returning to the US, eMarketer reports that Spotify overtook domestic service Pandora in 2017, with 65.4 million Spotify users (rather than subscribers) to Pandora’s 63.1 million. What a Top Music Industry Attorney Thinks About the Rise In Copyright Trolling — Our Latest Podcast, ‘Bone Conduction’ Headphones Don’t Go Over Your Ears — But Still Transmit Sound to Your Inner Cochlea. Notably, nearly twice as many under-30s used Spotify as used Apple Music in the three months prior to the survey – perhaps something to do with the free service. We can see from this graph that Netflix reports considerably higher ARPU than the music service – over twice as high, in fact. It is estimated that Spotify pay £0.0031 per stream. Post Malone was, however, second in 2018, followed by XXXTentacion (who died midway through the year), J Balvin, and Ed Sheeran, coming in a relatively (for him) poor fifth. Spotify Dominates Paid Subscriptions As Streaming Revenue Falls For First Time. Perhaps the only safe assumption would be: Spotify is responsible for a good deal of global streaming revenue. The streaming … However, this music on demand service comes with advertisements that may interrupt a user’s entertainment. An African startup says it wants to become the continents’ largest music streaming service and afford artists the opportunity to garner streaming revenue and royalties. Spotify has reported a total revenue of $7.44 billion in 2019. Ariana Grande is the only woman to make the top-five. What do you think the new Concept of Penny Per Play, would pay? Justin Bieber is the most regularly-occurring artist in the top-100, represented no fewer than eight times. It is only an estimate. Dylan Smith is a writer and music fan who enjoys reading and watching sports in his spare time. Billie Eilish’s WHEN WE ALL FALL ASLEEP, WHERE DO WE GO? Labels are hardly a model of benevolence, but it is they who actually put money in artists’ pockets. Perhaps new users are more inclined to the popular music side of the spectrum, or we’re seeing an increase in businesses using Spotify for background music. € betragen. This is more due to an increased share of Spotify MAUs in Latin America (increasing from 19% to 22%) and particularly the rest of the world (more than doubling from 7% to 16%). Spotify annual revenue and gross profit, 2015 – 2019, billions of euros. Spotify has reported a total revenue of $7.44 billion in 2019. He finished the year in fourth place, with Post Malone and XXXTENTACION overtaking him. While these numbers might give a vague idea of music streaming royalties in the United States, it’s important not to think about streaming … Or maybe the last two years have just seen a profusion of some of the best and most-loved songs of all time. Breaking it down by region, it seems there’s not a huge difference in the geographies of Spotify users and Spotify subscribers. Spotify subscriber growth by region, 2018 – 2019, millions, Spotify vs. other music streaming services. Spotify also overtook BBC Radio 1 in early 2017, making it the most-listened to radio station overall in the UK. The 2010s roundup came only two years after Spotify marked its 10th anniversary in 2018, which also saw some stats being realised on the most-played songs over the course of its first decade. For a bit of historical context Spotify subscribers as a percentage of MAU in Q4 2015 stood at 31%, in Q4 2016 at 39%, by Q4 2018 at 46%. This is also borne out if we look at these playlists in terms of growth. It is the sole representative of the 20th century in the top 100. According to some sources, the ad-supported revenue only makes up around 10% of their total revenue while the rest comes from their premium membership plans. Use our online music royalty calculator to work out the revenue you can earn through streaming services Spotify, Apple Music, Deezer and DSPs. We don’t have up-to-date figures on Pandora, but it counted 40 million in 2017 – which was around the same level as Spotify and Apple Music at the time. The growth of the subscription model has seen consecutive years of revenue growth in the industry, which have seen revenue figures not too far off those we last saw when physical media was preeminent. In Q4 2019 this saw daily podcast recommendations being sent to users in key markets. Free Spotify access comes with lower sound quality, and advertisements, and requires an internet connection. double the rate the majors grew their streaming revenue. Spotify is a global enterprise, however. While the video streaming app is not dedicated to music, music accounts for a significant share of YouTube viewing, particularly in the upper echelons of the most-viewed videos. Goodwater Capital give us a lower figure of 25 hours of content listened per month for the average Spotify user, in the last quarter of 2017. Curated playlists and suggestions are based on users’ listening histories. These are rounded up/down figures, to the nearest million). How much money per Spotify play? display: none !important; In fact, Spotify actually increased its revenues both quarter-on-quarter (2.2%) and annually by 13%, i.e. Taking a step further back, the only song not released in the second-half of the 2010s is Ed Sheeran’s “Thinking Out Loud”, which only dates as far back as 2014. Accordingly, Spotify may well have increased its scores in these metrics, iOS users steaming services used in three months preceding survey, Android users steaming services used in three months preceding survey. 206,011 Spotify streams. The following information – sourced from Spotify royalty data shared directly with Digital Music News – will help you verify that your compensation is comparatively fair. Apple Music and Pandora seem to possess broadly similar user demographics in this analysis, while Spotify stands out for its younger listenership. display: none !important; The access model – whereby we pay for unlimited access to as many different works as we can consume, so long as we keep paying our monthly rate – is now clearly the dominant form of consumption. While the subscriptions continue to grow in mature markets, the majority of new subscriptions will come from emerging markets especially Brazil, India, and Russia. In each region, Spotify listening is dominated by mobile. The intervening years, however, saw Spotify ARPU head steadily downward, while Netflix ARPU edged upward. The streaming giant generates revenue in two main ways; Firstly, if users want to listen to tunes on the platform for free, then they have to listen to advertisements while using the service. It is dependent on a maze of licensing negoti In proportional terms, these Spotify stats have remained consistent over the two years covered, bar a 1% gain from the rest of the world from North America in Q4 2018, and a 1% gain from the rest of the world from Europe in Q1 2020. These include Fausto, which has risen to become top podcast in Mexico. The above graphic also breaks down each service by gender. In 2017, Spotify was accused of peppering mood-based playlists with fake artists, that had hundreds of thousands of plays, yet seemingly no other presence. Mainstream and alternative listening on Spotify. A study conducted by the University of Minnesota and European Commission Joint Research Centre found that inclusion on Spotify’s “Today’s Top Hits” playlists, with around 26 million followers, increases streams by close to 20 million. Spotify was estimated to have a 36% market share of the then 305 million total streaming service subscriptions globally.