After paying the royalties, the remaining goes to the record label, the song's distributor or album, and finally, the artist.īut this part is also where things get complicated. Next, after calculating the total money earned for a song, Spotify proceeds to divide the payout in the form of royalties. For a stream to be counted, a user has to listen to a song for at least 30 seconds. Spotify claims that it currently pays an artist about $0.00348 per stream on a song. What is of interest here is how Spotify distributes its revenue to artists, songwriters, publishers, record labels, and other parties involved in the creative process. The remaining is money from advertisements. With about 200 million subscribers worldwide, it’s reported that over 90 percent of Spotify’s revenue comes from its Premium subscriptions.
Spotify has two main streams of income: ad revenue and subscriptions.
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