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So, why all the doom and gloom surrounding streaming royalties if so many people are using these platforms? They can hear what they want when they want.

Instead, they stream their music from popular streaming services. However, thanks to the digital revolution, fans are no longer buying CDs like they used to.

That’s quite a large proportion if you think about it!Ī successful singer-songwriter selling millions of CDs could easily make a profitable living for themselves. This percentage was due to them as sound recording revenues and mechanical royalties.

The type of account the fan uses (Free or Premium)īefore streaming, a singer-songwriter signed with a record label could have earned between 10-15% on each CD sold.

How much of the song was streamed (The royalty is less if only half the song is played).

The type of streaming platform (On-demand or Non-interactive).

How much does Spotify pay per stream? The amount paid to the rights holders often depends on a few factors: Instead, the recording artist is paid via record label or distributor. The songwriter is then paid a fee via collecting societies such as a Performance Rights Organization (PRO) and a Mechanical Rights Organization (MRO). Once the song is recorded and uploaded to streaming platforms such as Spotify and Apple Music, fans are able to stream and listen to that song at their own leisure. No matter the outcome, the songwriter always holds the publishing rights, while the recording artist will hold the master rights. If the songwriter / artist gets signed to a publisher and/or a record label, these might also be considered as rights holders as well. That song can then either be recorded and performed by the writer or given to another artist / band for them to record and perform. When a song is written, its writer holds the copyright to that song. Let’s start right at the beginning with some music publishing basics. However, it’s not as simple as it sounds… These fees are a vital source of income for songwriters and artists. Streaming royalties are the fees paid to rights holders (e.g., artists, record labels, songwriters, publishers, etc.) every time a song is played on music streaming services such as Spotify, YouTube, and Apple Music.

These platforms function much like a radio, playing songs to listeners at random, without the ability to select specific tracks.Īs you can expect, the music royalties are much higher for on-demand services compared to non-interactive platforms! What Are Streaming Royalties? Non-interactive streaming platforms include services such as Pandora and internet radio websites. Listeners can hear any song whenever they see fit. They are placed in this category for their music being ‘on-demand’. On-demand services include platforms such as Spotify, Apple Music, and YouTube. There are two types of steaming service: On-demand and Non-interactive. That’s an incredible amount of people, and we’ve not even mentioned other music streaming services yet!ĭespite the incredible numbers of music fans taking to music streaming services, there’s still one big issue that lurks over the streaming world… Music royalties! But first, let’s have a look at the types of streaming platform… Types Of Streaming Service

The release of iTunes in 2003 followed by the later release of Spotify in 2006 forever changed the way people consumed music.Īpproximately 286 million people use Spotify to consume music, with roughly 130 million of those listeners being paid subscribers. The recorded music industry isn’t what it used to be.