The compensation for artists varies significantly across music streaming platforms, and a recent report sheds light on these discrepancies, revealing that Apple Music pays more than twice what Spotify does on average.
Spotify’s Compensation Lags Behind Apple Music, With No Increase Despite Price Hikes
Duetti has released a new economic analysis that evaluates artist compensation from different music streaming services (via Apple World Today).
This report centers on artist payouts for 2024 and provides a comparison of major platforms like Apple Music, Spotify, YouTube, and others, highlighting their current standings and trends.
A key metric assessed is the payout per 1,000 streams from each service. The following figures represent the 2024 payouts for every 1,000 streams:
- Amazon: $8.80
- Apple Music: $6.20
- YouTube: $4.80
- Spotify: $3.00
The findings indicate that last year, Apple Music provided artists with more than double the payments of Spotify, largely influenced by Spotify’s free tier model.
Even with the numerous advertisements included in Spotify’s free service, the revenue generated from such streams contributes minimally to artists’ earnings.
However, Spotify’s low payouts cannot solely be attributed to its ad-supported service, as YouTube, another platform reliant on ads, compensates artists at over 50% higher rates on average.
Apple Music’s exclusive focus on paid subscriptions allows it to offer higher payouts, which is evident in the report.
Additionally, it highlights a troubling trend where Spotify has increased its subscription prices in recent years while artist payouts have declined with each price hike. While its investments in podcasts and audiobooks may be gaining traction, this growth might be at the cost of music artists’ earnings.
What are your thoughts on this report? Share your opinions in the comments.
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