Streaming Royalties
Payments artists receive when their music is played on streaming platforms.
Definition
Streaming royalties are payments generated when songs are streamed on platforms like Spotify, Apple Music, or YouTube. Rates vary by platform and country but average $0.003-0.005 per stream. Royalties are split between the master owner (usually the label) and the composition owner (publisher/songwriter). Understanding streaming economics is crucial for modern musicians.
Why It Matters
Streaming royalties are the primary income source for most recorded music today. Understanding how they're calculated, split, and paid is essential for artists and rights holders managing their business.
The streaming economy requires scale—fractions of a cent per stream add up only with significant plays. This reality shapes strategy around building consistent streaming audiences rather than relying on occasional hits.
Examples in Practice
An artist earning 100,000 monthly streams generates approximately $300-400 in recording royalties, requiring supplemental income sources.
A catalog artist's 20-year-old hits generate meaningful passive income through steady streaming.
A songwriter's streaming royalties from a modest hit provide ongoing income long after the song leaves charts.