Streaming Royalties Explained: How Musicians Get Paid Per Stream 

Back when CDs and digital downloads were popular, artists could rely more directly on sales for income. Today, streaming platforms like Spotify, Apple Music, and Tidal dominate how we listen to music, but the shift has not been as rewarding for musicians. Earnings per play are extremely low. For example, Spotify pays around $0.003 to $0.005 per stream, Apple Music between $0.007 and $0.01, and Tidal about $0.011 per stream. Spotify pays just a few thousand dollars for a million streams, so as an indie musician, is it really enough to make a living? Often, the revenue is split between labels, publishers, and distributors, leaving artists with only a small fraction. Research shows that for most musicians, streaming contributes less than 5 percent of their overall income, making it difficult to rely on it as a primary source of revenue.

Still, it’s not impossible to make money through streaming, especially for artists who manage to gain a large audience or leverage multiple platforms effectively. In this article, we’ll explore how musicians generate income through streaming platforms, what factors affect their payouts, and whether relying solely on streaming revenue is truly sustainable.
 

We’ll be taking a look at the following:

1. How does an Artist make Money from Spotify?
   
   
2. How much does Spotify pay per Stream?
   
   
3. How much is 10,000 streams on Spotify?
   
   
4. How much do Streaming Platforms pay per Stream?
   
   
5. What are Other Ways to Earn as a Musician besides Streaming?
   
   
6. FAQ
   
   
7. Final Word
   
   

How does an Artist make Money from Spotify?

An artist earns money from Spotify through royalties, which are paid out whenever their music is streamed. Since the pandemic, when touring came to a halt, streaming revenue became a lifeline for many musicians, but it quickly became clear that the earnings were far from enough for most.

In the UK, streaming generated over £1 billion in revenue from more than 100 billion streams in a single year, yet artists often receive only a fraction of that income. This highlights how labels, publishers, and distributors absorb the majority of the money before it reaches the musicians themselves.

While a handful of top artists can make significant sums, sometimes reaching six or seven figures, most struggle to see meaningful payouts.

How much does Spotify pay per Stream?

On average, the Spotify money per stream comes out to about $0.003 to $0.005, but the exact payout isn’t the same for everyone. It depends on things like whether the listener is using a free or premium account, where they’re streaming from, and the deals artists have with their labels or distributors. Since April 2024, Spotify has also added a rule that artists only get paid once they cross 1,000 streams in a year, which means one million streams usually brings in around $3,000 to $5,000.

Spotify uses a pro-rata system, which basically means all the money from subscriptions and ads gets pooled together and then split according to the share of total streams. Because of this, it can be tough for smaller artists to figure out exactly what they’ll make.

 That’s why many turn to a Spotify royalty calculator, which gives an estimate of potential earnings and helps them plan around how streaming might fit into their overall income.

How much is 10,000 streams on Spotify?

If we go by the average Spotify money per stream of about $0.003 to $0.005, then 10,000 streams would earn roughly $30 to $50. While it’s a nice bonus, this amount alone is far too little to support a sustainable living for most musicians, especially when compared to the time, effort, and costs involved in creating music.

How much do Streaming Platforms pay per Stream?

Spotify

Pay per stream: about $0.003 – $0.005
Plans: Student $5.99, Individual $10.99, Duo $14.99, Family $16.99

Pros:

• Huge global audience and strong discovery algorithm for new artists
  
  
• Over 80 million tracks available
  
  
• Free tier allows unlimited daily listening
  
  
• Offline downloads with Premium
  
  

Cons:

• Ads on the free plan are long and repetitive
  
  
• Limited skip and playback controls without Premium
  
  
• No hi-fi or lossless audio option
  
  

Apple Music

Pay per stream: about $0.007 – $0.01
Plans: Individual $10.99, Family $16.99

Pros:

• Higher average payout per stream than Spotify
  
  
• Over 100 million songs available
  
  
• Offline listening included
  
  
• High-quality sound with lossless and spatial audio
  
  
• Works seamlessly across Apple devices
  
  

Cons:

• No free tier beyond trial period
  
  
• Music discovery tools less effective than Spotify
  
  
• Podcasts and audiobooks are kept separate
  
  

Tidal

Pay per stream: about $0.011
Plans: HiFi $9.99, HiFi Family $14.99, HiFi Plus $19.99, HiFi Plus Family $29.99

Pros:

• Among the best payouts per stream for artists
  
  
• High-resolution and lossless sound quality
  
  
• Over 70 million songs
  
  
• Exclusive editorial features and original content
  
  

Cons:

• Premium subscriptions are costly compared to others
  
  
• Free trial includes ads after a few skips
  
  
• Smaller user base than Spotify or Apple Music
  
  

Qobuz

Pay per stream: around $0.043 (based on 2018 data)
Plans: Studio Solo $10.83, Studio Duo $17.99, Studio Family from $17.99, Sublime from $15+

Pros:

• Very high payout per stream compared to competitors
  
  
• Over 100 million songs in hi-res audio (24-bit FLAC)
  
  
• Strong option for niche markets and audiophiles
  
  
• Integrates with third-party playback systems
  
  

Cons:

• Limited audience size compared to bigger platforms
  
  
• Pricing is on the higher end
  
  
• Some songs are unavailable in certain regions
  
  

What are Other Ways to Earn as a Musician besides Streaming?

Besides streaming, musicians have plenty of ways to earn money, many of which can actually be more reliable and profitable. Here are some of the most common income streams:

1. Live Performances & Touring
   Concerts, festivals, and smaller gigs are still one of the biggest sources of income for artists. Selling tickets and performing live often pays much more than streaming royalties.
   
   
   
   
2. Merchandise Sales
   Selling branded items like t-shirts, posters, vinyl, or even digital collectibles can bring in steady income while strengthening fan loyalty.
   
   
3. Music Licensing & Sync Deals
   Artists can license their music for movies, TV shows, video games, or commercials. Sync deals often pay thousands of dollars for a single placement.
   
   
4. Teaching & Workshops
   Many musicians earn extra income by giving private lessons, running online courses, or hosting workshops for beginners and aspiring artists.
   
   
5. Crowdfunding & Fan Support
   Platforms like Patreon, Bandcamp, or Kickstarter let fans directly support artists by funding projects or subscribing to exclusive content.
   
   
6. Session Work & Collaborations
   Musicians can record for other artists, produce tracks, or write songs as freelancers, earning royalties or flat fees.
   
   
7. Physical Sales & Vinyl
   While digital media dominates, vinyl and CDs remain popular among collectors and can be sold at shows or online for additional income.
   
   
   
   

FAQ

How much do musicians earn per Spotify stream?

On average, artists earn between $0.003 and $0.005 per stream. The exact amount depends on factors like the listener’s country, subscription type, and the artist’s agreement with labels or distributors.

Can musicians make a living from streaming alone?

Most musicians cannot rely solely on streaming for a sustainable income. Only a few top artists earn significant amounts, while the majority need other revenue sources like live shows, merchandise, and licensing.

Which streaming platforms pay the most per stream?

Platforms like Tidal and Apple Music generally offer higher payouts, with Tidal averaging around $0.011 per stream and Apple Music between $0.007 and $0.01. Qobuz has historically paid even more but has a smaller audience.

How is Spotify's money per stream calculated?

Spotify uses a pro-rata system, pooling subscription and ad revenue and distributing it to rights holders based on their share of total streams in a month. The final payout depends on the artist’s agreements with labels or distributors.

What are the best ways for musicians to earn money besides streaming?

Artists can supplement income through live performances, merchandise sales, licensing music for TV, films, and games, teaching, crowdfunding, and session work or collaborations.

How can I estimate my streaming royalties?

Musicians can use a Spotify royalty calculator or similar online tools to estimate potential earnings from streams across Spotify and other platforms.

Final Word

In the long run, it’s clear that streaming alone isn’t enough to provide musicians with a stable income. Even on platforms that pay higher rates, the average Spotify money per stream and similar payouts from other services don’t add up to a sustainable living unless an artist has millions of plays each month.

This makes it crucial for musicians to diversify their income through touring, merchandise, licensing, teaching, or fan support. Streaming can still be valuable for exposure and building an audience, but relying on it as the sole source of income isn’t a viable strategy for long-term success.

We at GreaseRelease, have a bunch of curators on our network who are looking for new & exciting music to push on their massive playlists. If you make music and want to reach a wider audience, check out our submission platform and get a chance to reach millions of listeners! Submit your tracks now!