Spotify is one of the most popular streaming services, with over 40 million paying subscribers and more than 170 million total users. It has become a major player in the music industry, and many artists rely on it for income. But how much does Spotify pay per 100k streams?
The answer to this question depends on a few factors, including the type of subscription the listener has and the artist’s royalty rate.
Spotify pays out royalties to rights holders (such as labels, publishers, and distributors) based on the number of plays each track receives. The royalties are then divided up amongst those involved in creating the music – typically 70% goes to the rights holder, 20% to the artist/songwriter, and 10% to featured artists.
Spotify pays different rates depending on a user’s subscription plan. For example, for users with a free account (i.e., no subscription), Spotify pays out $0.0053 per stream. For users with Premium accounts (which cost $9.99/month), Spotify pays out $0.0084 per stream.
For rights holders (i., record labels, publishers, etc.), these rates are multiplied by two before they receive their share of royalties. The rate they receive varies depending on their royalty rate agreement with Spotify.
In terms of what this means for artists and songwriters, they would earn an estimated $1,000 for every 100k streams on Spotify under a standard royalty rate agreement.
To summarise: Spotify pays out royalties to rights holders based on how many streams each track receives; different rates apply based on user subscription plans; and artists/songwriters can expect to receive around $1k for every 100k streams under a standard royalty rate agreement.