The way Spotify and Apple Music pay artists is simple. They take all of the money generated from users, whether by advertisements or subscriptions, and put in a big pot. They then divide that pot by the total share of streams each artist received.
Also, does apple music pay artists?
In the letter to artists and labels, Apple told artists that it pays them 1 penny for each stream. So if you’re obsessed with your favorite song, you’d have to play it 100 times for the artist and label to make $1.
This is consistent with 9to5mac’s report that Apple Music pays between $12 and $15 per 1000 streams (i. e, 1.2¢ to 1.5¢ per stream). So, let’s say an artist’s songs were streamed a total of 20 million times on Apple Music in one year, and that artists receive the same 1.2¢ per stream rate as Keating.
This is what we ran into. apple has revealed a bit about how much it pays artists in a letter discovered by The Wall Street Journal. In the letter to artists and labels, Apple told artists that it pays them 1 penny for each stream.
The most frequent answer is; as far as how much Apple makes, the company said that it pays 52 percent of subscription revenue to labels and artists. That means Apple is making 48 cents on the dollar. That penny doesn’t go straight to the artists in most cases.
Is Apple Music paying artists more than Spotify?
So, the average observed per-stream payout on Apple Music is $0.00551 vs. $0.00318 for Spotify . Does that mean that Apple Music is paying artists more than Spotify?, and well, maybe. However, the average payout rate alone is not enough to make this conclusion.
A common question we ran across in our research was “Why is Apple Music pay per stream more than Spotify?”.
As per music industry experts, Apple music pay per stream service is double the amount that Spotify pays to its artists. Additionally, Apple pointed out that it does not believe in paying a lower royalty rate in exchange for featuring editorial playlists. That is because they’ve based the music selection on merit.
How much do music streaming services pay musicians?
Music streaming services like Spotify, Apple Music, Deezer, Tidal and Amazon don’t have a fixed “pay-per-stream” rate when it comes to paying out music royalties to artists. There are lots of factors that affect how much money one stream is worth in royalties.
Where does the Penny go when Apple distributes music?
That penny doesn’t go straight to the artists in most cases. It goes to rights holders, who then distribute it to the labels, artists, and everyone else involved in the music creation process. In the end, it’s not up to Apple how much of that penny goes to the actual creator of the music and how much goes to the label and other parties.