The way Spotify and Apple Music pay artists is simple. They take all of the money generated from users, whether by advertisements or subscriptions, and put in a big pot. They then divide that pot by the total share of streams each artist received.
How much do artists get paid on apple music?
This is then split three ways between label, composer and artist – with the artist typically receiving 13%. This means that an artist will receive $0.0000988 per Apple Music stream, or $1 for every 10,122 streams .
You see, According to Wall Street Journal, Apple Music pays an average of $0.01 per stream to its artists. This was revealed through an open letter that Apple sent to its artists via the service’s artist dashboard in an aim to show that they are artist-friendly.
We pay the same 52% headline rate to all labels. While other services pay some independent labels a substantially lower rate than they pay major labels, we pay the same headline rate to all labels. This means artists can distribute music however they like, knowing Apple Music will pay the same rate.
As far as how much Apple makes, the company said that it pays 52 percent of subscription revenue to labels and artists. That means Apple is making 48 cents on the dollar. That penny doesn’t go straight to the artists in most cases.
Why is Apple Music pay per stream more than Spotify?
As per music industry experts, Apple music pay per stream service is double the amount that Spotify pays to its artists. Additionally, Apple pointed out that it does not believe in paying a lower royalty rate in exchange for featuring editorial playlists. That is because they’ve based the music selection on merit.
If Apple Music gave $1 million of its revenue share to artists every month and Taylor Swift’s songs were accounted for 1% of all streams, then Taylor would receive $10,000 per month. About 70% of Spotify and Apple Music’s revenues go to music labels and artists.
Where does the Penny go when Apple distributes music?
That penny doesn’t go straight to the artists in most cases. It goes to rights holders, who then distribute it to the labels, artists, and everyone else involved in the music creation process. In the end, it’s not up to Apple how much of that penny goes to the actual creator of the music and how much goes to the label and other parties.
How much money can you make being a musician?
You can’t make money being a musician if you aren’t one yourself. For every 1,000 plays, an unsigned artist can earn $6.40from Apple Music and $3.80from Spotify, but You. Tube only pays out $0.60 per 1,000 streams.