Should You Be Worried About Spotify Royalties?

by slim

Spotify royalties are as important to every independent artist as their music.

It’s all about making good music and getting paid. But there are things you need to know about how this is done.

I’ll tell you everything you need to know about Spotify royalties rates.

What are Spotify Royalties?

Spotify royalties are the total money made from your music on their platform.

If a premium user listens to your music on Spotify it generates what is called royalties.

Now Spotify doesn’t take the whole royalties, it is shared between you and Spotify, you get to hold on to 70%, and 30% goes to Spotify.

How much does Spotify pay per 1000 streams?

There is no fixed amount Spotify pays per stream, it totally depends on the region the streams are made.

But it is said that at most Spotify pays $4 per 1000 streams.

Which means $0.04 for 10 streams, and $40 for 10,000 streams. This could be less dependent on the country streams, which I will talk about later on this post.

Should Independent Artists Use Spotify as a Primary Revenue Source?

Well, the blunt answer is NO.

Independent Artists shouldn’t just depend on Spotify as a primary revenue source, in fact, there are a lot of options. And also considering other streaming platforms like Apple Music, Amazon, youtube, and others are a great way to maximize earnings as an artist.

Which Country Pay the Most Per Stream on Spotify?

I will categorize them into three, from highest to lowest.

  • Spotify countries tier 1

Countries in this category have high purchasing power, there is the wealthiest country in the world with a lot of engagement online.

Countries namely: Luxembourg, Australia, Belgium, Canada, Austria, Denmark, Germany, Netherlands, Ireland, France, United Kingdom, New Zealand, United States of America, Spain, Italy, Switzerland, Norway, and Sweden all fall into tier 1 countries.

  • Spotify countries tier 2

Countries in this tier have Lower purchasing power and an average income per individual base on statistics.

So this country tends to generate less income per stream that’s why there falls in tier 2.

Country Like Andorra, Egypt, Dominican Republic Bahamas, Bulgaria, Cyprus, Brunei, Costa Rica, Belarus, Argentina, Bolivia, Brazil, Croatia, Bosnia and Herzegovina, Greece, China, Czech Republic, Chile, Colombia, Ecuador, Iceland, Guyana, Hungary, Hong Kong, Vanuatu, Fiji, Estonia, Japan, Indonesia, Israel, Lithuania, Macao, Kazakhstan, Malaysia, Malta, Latvia, Montenegro, Morocco, Mexico, Nepal, Oman, Panama, Paraguay, Peru, Philippines, Poland, Portugal, Puerto Rico, Qatar, Republic of Korea (South), Romania, Russian Federation, Saudi Arabia, Serbia, Thailand, Turkey, Ukraine, United Arab Emirates, Uruguay, Singapore, Slovakia, Slovenia, and South Africa.

  • Spotify Countries tier 3

These countries are mostly Africa countries, A country that is developing and with Very low-income purchasing power.

A country like Honduras, India, Iraq, Jamaica, Kuwait, Jordan, Kenya, Bahrain, Kyrgyzstan, Laos, Lebanon, Albania, Bangladesh, Barbados, Belize, Algeria, Armenia, Azerbaijan, Angola, Cambodia, Cameroon, Cape Verde, Chad, Benin, Botswana, Burkina Faso, Burundi, Comoros, Ethiopia, Gabon, Congo, Haiti, Georgia, Mauritius, Moldova, Mongolia, Mozambique, Namibia, Nicaragua, Niger, Nigeria, Pakistan, Senegal, Sri Lanka, Suriname, Swaziland, Tajikistan, Tanzania, Tunisia, Togo, Trinidad and Tobago, Turkmenistan, Uzbekistan, Uganda, Vietnam, Zambia, Madagascar, Mali, Mauritania, Lesotho, Macedonia, Guatemala, Guinea, El Salvador.

Why do artists use Spotify?

Spotify is among the highest-paying Music streaming platforms in the world and also one of the best in the world.

Can Artists Get Paid for Playlist Curation?

The answer is NO. Artists only get paid on track streams.

So if your music generates streams from a playlist you get paid for the streams, not for the playlist.

How to collect Spotify royalties

You can collect your Spotify royalties via your distribution company.

Spotify sends a payout to the Distribution Company every two to three months after the streams have been received.

Meaning if you get 10,000 streams for the month of January, you will expect the royalties in March or April.

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