Spotify is one of the largest and most popular music streaming services in the world, with more than 70 million subscribers. As such, it’s natural that many artists and songwriters are keen to know whether Spotify pays royalties.
The short answer is yes, Spotify does pay royalties.
Spotify pays its royalty payments to rights holders through a combination of two different types of payments: record label payments and publisher payments. Record label payments cover the use of sound recordings, while publisher payments cover the use of musical compositions.
In order for an artist or songwriter to receive these royalty payments, they must first be registered with a performing rights organization (PRO). A PRO collects royalties on behalf of its members when their music is performed or streamed on any platform. In the US, there are three main PROs: ASCAP, BMI, and SESAC.
Once an artist or songwriter has registered with a PRO and their music is available on Spotify, they will start receiving royalties whenever someone streams their songs. The amount of money they receive will depend on a variety of factors including how many times their song was streamed, what country it was streamed in, and what type of subscription (e.g., free or premium) was used.
In conclusion, Spotify does pay royalties to rights holders when their music is streamed on the platform. However, in order to receive these payments, an artist or songwriter must first register with a performing rights organization and ensure that their music is available on Spotify.
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