Spotify is a great way for you to enjoy listening to music and it’s a great way for producers, especially for more unknown or smaller (you name it) producers, to spread their music out to thousands of people worldwide – but there’s also a dark side to it that you might or might not know. It’s the payment that Spotify pays out to the artists as you listen to their music. Spotify has multiple business models like Free, Unlimited etc. and even though you might pay for it, the artist you listen to basically don’t even get a penny for it.
What is the difference between listening to music on Spotify and buying the songs on digital download stores?
- From June to December 2014, 4.218 people listened to my music on Spotify.
- With an average payout of 0,0061€ per stream, I’ve earned 8,97€ in those 6 months.
- Subtracting the duties to the label and the publishing service, etc., I’m left with a total income of 2,70€
What if all those 4.218 people would have bought the song on iTunes instead?
- With an average payout of 0,80€ per sold song, I would have earned 3.374€ in those 6 months if people would have bought the songs on iTunes
- Substracting the duties to the label and the publishing service, etc., I’m left with a total income of 1.013€
So you may see the hard negative impact that Spotify does to the commercial part of what I do. I don’t care about the money I make with my music, because it no matter how, doesn’t pay out the endless hours of work, spent into production. I’m doing it because it’s my passion and I love to do what I do. I just wanna show up, that if you really wish to support me the financial way, go ahead and buy the songs somewhere, like iTunes, Beatport or Amazon. It’s simply worth more than a stream on Spotify.