Streaming royalties are automatically split between labels and artists based on their contracts.
The digitalization of the music industry is still in its early days and streaming services, with Spotify at the forefront, are still trying to set their ultimate business models. The process of finding the perfect model has led to fluctuations of streaming royalties. But with streaming services finally finding their way, the streaming royalty payouts should become more stable over time. But, will the payouts ever be fixed and fully predictable?
No, they won’t.
All of us want to find out exactly how much streaming services pay out to artists. Unfortunately, it is impossible to get a straight answer, and this is why; not all streams are equally valuable. Streaming services such as Spotify, Apple music and Deezer don’t have a fixed pay-per-stream rate, instead the royalty rates fluctuate month to month. The reason being that there are several factors that affect the value of a stream, here are the main ones:
– Which streaming service is used
– Does the listener have a paid subscription or free account (advertisement funded)?
– The listener’s country and location
– The pricing in different regions
– The artist’s royalty rate
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Labelcaster automated and expected streaming royalties
In spite of the above, Labelcaster does calculate expected streaming royalties for all of our users. We use the vast amounts of data available and calculate an average payout per service provider. The result isn’t exact but gives you a ball-park figure. Also, Labelcaster pays out automated royalties based on the contracts signed on our platform.
So how much is one stream worth on the different platforms? Here are the latest numbers:
Amazon music: $0.01196
YouTube Red: $0.00802
Apple Music: $0.00563
Google Play Music: $0.00551