How do they correlate? Spotify $0.00437 per stream Amazon $0.00402 per stream Pandora $0.00133 per stream YouTube $0.0.00069 per view . For a bit of historical context Spotify subscribers as a percentage of MAU in Q4 2015 stood at 31%, in Q4 2016 at 39%, by Q4 2018 at 46%. All this was despite Spotify’s ad-supported revenue falling by 11%. Spotify also overtook BBC Radio 1 in early 2017, making it the most-listened to radio station overall in the UK. YouTube does not feature here, presumably folded in ‘others’. Aside from Amazon, the highest figures are generated on a per stream basis by Napster ($0.00989) and Tidal ($0.00802). Reportedly, 40,000 new songs are added to the platform every day – so that ‘over’ is doing a lot a legwork. One of Spotify’s most-loved features is the user-specific playlists generated at first weekly and now daily for each listener, based on their listening history. Over 4 billion playlists exist on the platform, according to Spotify itself. Spotify reported that Mexico City played host to the biggest concentration of Spotify users (after launching in 2013), though without specifying just how many. Spotify, the market leader in online music streaming, had a 32% YoY growth in paid subscriptions during 1H 2019.; Apple and YouTube Music are very aggressive and are going to disrupt the regionally segmented market. The coronavirus pandemic has cast uncertainty over Spotify as it has with many companies. Justin Bieber is the most regularly-occurring artist in the top-100, represented no fewer than eight times. Now That the Music Modernization Act Has Passed, Who’s Gonna Run the Damn Thing? No doubt your preferred theory will be contingent at least somewhat on your age…. Deezer offers up a more precise 56 million, while Google Play Music is a little way behind, on 40 million. Spotify 2019 revenue came to a total of €6.7 billion ($7.3 billion), with gross profit of €1.7 billion. We might note both services offer ad-supported free options, which no doubt went some way to facilitating this crossover. The number one in this case was “Señorita” by Camila Cabello and Shawn Mendes, with Post Malone and Swae Lee’s “Sunflower” in third. Marrying the two above discussions, Spotify is known to create playlists based on both content and context. display: none !important; Spotify-curated playlists are responsible for a huge proportion of listens on the platform. With peak listenership roughly following the “path of totality” – where the moon was blocking out the sun – we can certainly see that Spotify users have a sense of occasion. It took eight years of Spotify for one track to reach 1 billion streams, and 10 years for 10 songs to reach this threshold. According to these Spotify stats, while the Swedish company leads the way in revenue terms, Apple is brining in more revenue proportionally. Inclusion on the “New Music Friday” playlist was also found to substantially increase the likelihood that a song would be successful – even for unknown artists. These scores are reflective of the far higher level of comfort with streaming among younger users. Spotify is looking to diversify its revenue beyond subscriptions and ad-supported music streaming. Sheeran’s “Thinking out Loud” also makes the list, in fifth. There is a question, though, which separates Netflix and Spotify. In terms of operating margin, Spotify remains in the red, though a deficit of €17 million ($18 million) and negative margin of 0.9% represents a quarter-on-quarter improvement on Q4 2019’s deficit of €77 million ($83 million) at 4.1% and a year-on-year improvement on Q1 2019’s deficit of €47 million ($51 million) and negative margin of 3.1%. In 2019 more than 60 million users engaged with this feature, sharing content 40 million times and streaming 6.5 billion songs from the playlists. Here’s a Detailed Breakdown of Radio Monitoring Companies, An Insanely Detailed Discussion About the Music Modernization Act, Steven Van Zandt: ‘Streaming Is a Disaster for Artists. Going back a few years to the last three quarters of 2017, Goodwater Capital published a wide ranging NPS scores of rival music streaming services. We should perhaps takes this figures as a guide rather than gospel, owing to the complications that tend to arise from comparing two different datasets from two different sources. Annual income growth of 41 percent means streaming platforms are now the music sector's single-largest revenue source. He finished the year in fourth place, with Post Malone and XXXTENTACION overtaking him. Spotify pays artists approximately $0.0032 per stream, which equates to approximately 1 cent per 3 plays. Note that we’ve converted Spotify ARPU from euros into dollars for the entire period at April 2020 exchange rates. Several factors are at play here. Below is an example of a “taste profile” of Quartz writer Adam Pasick, and an illustrative map showing how these focus areas are generated. Of course, preferring one platform over another does not mean you are solely dedicated to it – especially when certain services are offered free for users, or others might have exclusive access to certain popular artists. More on this in the Spotify Usage Statistics below. Ed Sheeran bakes gingerED cookies with his biggest Spotify fans in New York City (Photo – Getty) Stars with a higher streaming “market share” get a bigger percentage of the revenue. Artists petitioned Spotify to raise its royalty rates in March 2020, in the wake of the coronavirus pandemic, in order to help them survive. Pandora is slightly behind on 16.9%, while Google Play Music on 11.7% and Amazon Music on 8.8% are further back still. Spotify also says its Streaming Ad Insertion technology will also become more broadly available to U.S. advertisers this summer and announced a … It also appealed against a decision from the US Copyright Royalty Board to award songwriters a 44% rate increase by 2022. We and our partners use cookies to personalize your experience, to show you ads based on your interests, and for measurement and analytics purposes. A premium tier with paid subscription The freemium version of Spotify allow users to browse through the catalogue of songs and play them. Spotify is a digital music service that gives you access to millions of songs. It is predicted it will grow to 37.1 million over 2020. Apple are not a company anyone would want as a competitor. This reveals, then, that a concentration of highly-followed context playlists account for a significant share of followers. Spotify is looking to diversify its revenue beyond subscriptions and ad-supported music streaming. GlobalWebIndex Spotify stats from H2 2018 break down Spotify listening into mobile vs desktop per region, allowing overlap where users use both. Claims to democratize the music industry have also been questioned, with the world’s biggest four music labels responsible for 87% of content available on Spotify. Quickly gaining ground in the EDM niche, an Australian band earned $4,955.90 from 1,023,501 streams between October and February, with the sum also reflecting estimates for March, April, and May. Both Apple Music and Amazon Music claim libraries of over 60 million songs. Global music streaming services market share, H1 2019. Spotify pays out around 52% of revenue to record labels, who would then pay their artists anywhere from 15% to 50% of that, depending on their status. We’ve calculated these figures using Spotify’s regional percentages versus total MAU, and rounded to the closest million. Set Realistic Goals. Looks Like Apple Music Is Coming to Tesla Soon, Michael Jackson’s Neverland Ranch Sells for $22 Million — 78% Lower Than Original Listing Price, Cardi B Wins $30 Million Lawsuit Against Former Manager, Tekashi 6ix9ine Still Hasn’t Responded to a $5.3 Million Canceled Concert Lawsuit, 29-Year-Old AEG Executive Connected to Nashville Bomber — Here’s What We Know, What Streaming Music Services Pay (Updated for 2020), Is Your Song Being Played on the Radio? As of April 2019, it was thought that Apple is growing at a slightly faster rate than Spotify (2.4-2.8% compared to 2-2.3% respectively). Revenue model and value proposition. Total losses for 2020 are estimated to be slightly higher, at an estimated €150-250 million ($162-217 million). In May of this year, you might have seen classical violinist Tasmin Little’s shocking description of her Spotify income. Spotify is a global enterprise, however. You can either type in how many streams your song has or you can use the slider to estimate how much your song will earn you on Spotify, Apple Music, or Tidal. The most-listened artist, unsurprisingly, was Drake, followed by Ed Sheeran. This statistic shows Spotify's revenue and net income (profit) from 2009 to 2018. England vs. Colombia – Spotify streams of “Three Lions”. Interestingly, 44% of Apple Music listeners also used Spotify, alongside 32% of Amazon Music listeners and a huge 55% of Deezer users. In Q1 2020, Spotify revenue stood at €1.85 billion ($2 billion, May 2020 exchange rates used except where specified), €1.7 billion ($1.84 billion) of this coming from Premium subscriptions. The first was Drake, WizKid and Kyla”s “One Dance” in December 2016. Given most artists would struggle to make a living from such rates, it’s clear that Spotify’s model does not take artist income into account. Let’s not also forget that Spotify saw off the challenge posed by illegal downloading to the music industry. German-language chatshow podcast Fest und Flauschig topped the podcast charts, while crime & mystery was podcast listeners’ favourite genre. That said, you’ll likely be interested to know about the royalties’ possible long-term trends. Although Spotify operates on revenue shares for each stream rather than a fixed rate, its current payout rate is around $0.0038 per stream — just below four-tenths of a cent. Spotify generates revenues by selling premium streaming subscriptions to users and advertising placements to third parties. Listeners have access to nearly the entire mainstream Western canon of music (and much from beyond it) available at a few clicks, in high quality. The top five female artists of the 2010s also include such luminaries as Rihanna and Taylor Swift. Spotify vs. Apple Music global subscribers, 2015 – 2019. Without further ado, here are 6 proven strategies to boost your streaming revenue on Spotify. It is the sole representative of the 20th century in the top 100. Spotify generates most revenue by selling ad-free music- and podcast-streaming services, but also sells ad space on its non-premium streaming service. We might note that, however, even over the course of four months, we have seen a change in the standings, with Post Malone’s “Rockstar” overtaking Drake’s “One Dance” – reflecting the younger musician’s rapidly increasing clout. Free Spotify access comes with lower sound quality, and advertisements, and requires an internet connection. These losses have hit shareholder earnings, with earnings per share coming in -€0.20 (-$0.22), albeit this is an improvement on Q1 2019’s -€0.79 (-$0.86). https://threadreaderapp.com/thread/1298069924439523328. Spotify currently lists over 50 million songs, as well as over 700,000 podcast titles. While physical media might be being outpaced by streaming, another industry that is increasingly finding its consumer base eroded by Spotify is commercial radio. An analysis by Chartmetric of Spotify’s “Genres and Moods” category of playlists (thus including both types of playlist) shows that in terms of sheer volume, we find a greater number of followers for content rather than context-based playlists. As of early 2020, Pandora had 6.2 million paid subscribers and Spotify had about 130 million. Interestingly, though, both are outstripped by hybrid playlists, which are considered to take a little from each category (think “Latin Dance Cardio” or “Dance Party”). What a Top Music Industry Attorney Thinks About the Rise In Copyright Trolling — Our Latest Podcast, ‘Bone Conduction’ Headphones Don’t Go Over Your Ears — But Still Transmit Sound to Your Inner Cochlea. Accordingly, Spotify may well have increased its scores in these metrics, iOS users steaming services used in three months preceding survey, Android users steaming services used in three months preceding survey. Spotify generates most revenue by selling ad-free music- and podcast-streaming services, but also sells ad space on its non-premium streaming service. A more recent (2019) SoundCharts study looking at the average royalty payouts per stream reports that artists earn the considerably lower sum of $0.00318/stream on Spotify. This tells a different story. was the most-listened album of 2019 – also a first for a female artist, with her “bad guy” the second-most streamed song. $0.003655144628199 per stream.” (0.37 cents per stream, for ease of comprehension.) We might presume Spotify Premium subscribers listen to more than this, having paid for the pleasure of ad-free, high-quality streaming. They would then receive 50% of the net revenue generated, cutting the label out of the equation. (The Weeknd is the fifth-most listened male artist, in case you’re curious about that). Notably, a handful of prescient key staff members had jumped ship from the public station to Spotify in the years preceding the coming into being of this new paradigm. Back in December 2019, for instance, you may have read our report on cellist Zoe Keating’s receiving a $753 check from Spotify, as compensation for 206,011 streams. Its biggest endeavor so far has been its investments in podcasting. The access model – whereby we pay for unlimited access to as many different works as we can consume, so long as we keep paying our monthly rate – is now clearly the dominant form of consumption. As such, this is one of the purest middleman-free indications of Spotify economics for an independent musician. Make data driven decisions and optimize your app strategy. Bieber, Post Malone (6), and Ed Sheeran (5) account for nearly one in five tracks (albeit one of these, “I Don’t Care” is a collaboration between Sheeran and Bieber). The power of the Spotify playlist cannot be understated. In total, nearly 17 million years-worth of music was streamed over the first 10 years of Spotify. Back in 2017, Spotify had actually requested that labels reduce royalty rates in order to become financial stable. In 2016, we reported on the biggest spreadsheet of Spotify royalties that we’d received to date. Other more recent features we might consider after this point is the annual ‘Your Top Songs’, customised to each user based on their year’s listening. We might put this down to Apple’s relative strength in the lucrative US market, compared to Spotify’s more diverse userbase. Streaming music services’ share of total music revenues is bigger than ever. Cost of revenue was €5 billion ($5.4 billion). Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. Flipping it around, 32% of Google Play Music users used Spotify. This may not sound like much, but when you have millions of listeners tuning in, it … Use our calculation tool to estimate how much you’ll earn from your streams. This could be ascribed to a number of factors, though we might speculate algorithmic and playlisting trends driving listeners to top tracks have something to do with it. It operates on a freemium model. Sie bestätigen, dass Werbung auf Spotify Marken relevanter und vertrauenswürdiger erscheinen lässt.³ . It has drawn criticism from recording artists, who complain that it pays too little. How much money per Spotify play? For all but seekers of rare obscurities, there’s enough music on Spotify to comfortably last the rest of any given user’s life. Here is my 2 cents worth (= 4+ Spotify streams) I think the streaming rate should strive to be at least $.01 per stream and the revenue should be distributed with these splits. Goodwater Capital give us a lower figure of 25 hours of content listened per month for the average Spotify user, in the last quarter of 2017. Compare growth in Spotify MAU in various regions we can see how growth in the rest of the world and Latin America has come to accelerate in recent years, while North American growth has been more steady. And Spotify, the world’s biggest streaming service, reported £1.6bn in revenues in the second quarter from almost 140 million subscribers paying $9.99 per month in the US, £9.99 in the UK. Interestingly, a surge in US Spotify users is forecast towards the end of the forecast period in 2023. Europe is the biggest market in both cases, followed by North America. Despite its pirate roots, streaming has become the engine room of revenue generated from recorded music. NPS measures how likely a customer is to recommend a product or service. In 2020, Spotify introduced Spotify Kids in select markets – another potentially significant addition. While these numbers might give a vague idea of music streaming royalties in the United States, it’s important not to think about streaming … It was an instant success, with a Facebook partnership helping it rise rapidly to prominence. Spotify claims a 35% market share, leading Apple Music (19%) and Amazon Music (15%). Over the course of 2019, 3.7 million shares were repurchased for €422 million ($457 million), at an average cost of €131.81 ($142.77). It was already the most-streamed song by the end of 2018…, Queen’s 1975 hit “Bohemian Rhapsody” is the 35th most streamed song on Spotify. Post Malone was, however, second in 2018, followed by XXXTentacion (who died midway through the year), J Balvin, and Ed Sheeran, coming in a relatively (for him) poor fifth. As of September 2018, however, Spotify offers a service to artists who want to directly upload music to Spotify. Of course, ARPU must be considered in context, and we might note that Netflix’s financials are not viewed as a bed of roses. Spotify revenue came to $7.3 billion in 2019, which would give it a huge 64% share of total streaming revenue, from 36% of total subscriptions. We might presume, however, that in the intervening years that older users may have grown more comfortable with streaming platforms such as Spotify, as they become a more familiar part of the music landscape. Those who view Spotify’s twin role as a distribution platform and tastemaker as something of a conflict of interest may find this news troubling. Curated playlists and suggestions are based on users’ listening histories. Spotify annual revenue and gross profit, 2015 – 2019, billions of euros. In real terms the figure would have been worth more against Netflix. Announced on February 5th, as part of the streaming giant's For The Record financial performance report, Spotify revealed they had made a total revenue of $7.44 billion last year, an increase of 29% when compared to 2018. Both total Spotify user numbers and subscribers fell into the ranges predicted in the previous quarter, of 279-289 million and 126-131 million respectively. But how much do Spotify, Apple Music, Tidal, Deezer and alike pay the artist? We don’t have an update on this figure, though Spotify did reveal in December 2019 that 60% of listeners discovered an artists from outside their home country in the past month. Both come closer to parity than Pandora, for which close to six in 10 listeners were female. However, this music on demand service comes with advertisements that may interrupt a user’s entertainment. Interestingly, it reveals that Spotify is the most male-dominated platform. The next step will be to compare the song license with this recording license.