We calculate streamshare by tallying the total number of streams in a given month and determining what proportion of those streams were people listening to music owned or controlled by a particular rightsholder.Ĭontrary to what you might have heard, Spotify does not pay artist royalties according to a per-play or per-stream rate the royalty payments that artists receive might vary according to differences in how their music is streamed or the agreements they have with labels or distributors. From there, the rightsholder’s share of net revenue is determined by streamshare. This includes payments for things like taxes, credit card processing fees, and billing, along with some other things like sales commissions.

To calculate net revenue, we subtract the money we collect but don’t get to keep. We distribute the net revenue from Premium subscription fees and ads to rightsholders. When a song gets played on Spotify, the rightsholders receive royalties for it, whether it’s played by a Premium or ad-supported customer.įor detailed info on music industry economics and artist payments, check out /loudandclear. These payments are issued to publishers, collecting societies, and mechanical agencies based on the territory of usage. Publishing royalties: The money owed to songwriter(s) or owner(s) of a composition.

Recording royalties: The money owed to rightsholders for recordings streamed on Spotify, which is paid to artists through the licensor that delivered the music, typically their record label or distributor.

Music on Spotify earns two kinds of royalties:

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