An artist typically earns between $3,000 and $4,000 for 1 million streams on Spotify. This figure represents the royalties an artist receives directly from their music being played by listeners.
Understanding Spotify Royalties
Spotify pays artists based on the number of streams their music accumulates. On average, the platform pays artists a rate that falls between $0.003 and $0.004 per single stream. This per-stream rate can vary slightly based on factors such as listener location, subscription type (premium vs. free), and specific distribution agreements.
How Earnings Are Calculated
To illustrate how 1 million streams translate into earnings, consider the average per-stream royalty rate:
- Minimum Estimate: 1,000,000 streams × $0.003/stream = $3,000
- Maximum Estimate: 1,000,000 streams × $0.004/stream = $4,000
This means that for every million plays their songs receive, artists can expect to earn within this range.
The following table summarizes potential earnings at these rates:
| Number of Streams | Minimum Earnings ($0.003/stream) | Maximum Earnings ($0.004/stream) |
|---|---|---|
| 1,000 | $3.00 | $4.00 |
| 10,000 | $30.00 | $40.00 |
| 100,000 | $300.00 | $400.00 |
| 1,000,000 | $3,000.00 | $4,000.00 |
Payment Eligibility Threshold
Starting in January 2024, Spotify implemented a new policy for royalty payments. Artists must now accumulate a minimum of 1,000 streams within a 12-month period to be eligible to receive royalties for their music. This measure ensures that only actively streamed music generates payouts, affecting artists with very low stream counts.
It's important to note that these figures represent the gross amount Spotify pays out to artists or their distributors. The final take-home amount for an artist may be subject to deductions from record labels, distributors, or other parties involved in the music's release and promotion.
