Music Royalty Calculator
Learn How To Estimate Your Income On Spotify
With the advent of on-demand music streaming platforms, the recorded music industry has indeed revolutionized. Fans simply love the idea of listening to their favorite tunes non-stop, whenever they want, and from wherever they like without the hassle of buying or carrying CDs. However, musicians, especially emerging artists, worry about royalties. After all, when most fans listen to their songs on music streaming services, how will they earn money?
This article aims to lift the curtain on royalties in on-demand music services and help you calculate how much you can earn. But before that, let’s learn whether it’s even worth it to be present on Spotify.
With the advent of on-demand music streaming platforms, the recorded music industry has indeed revolutionized. Fans simply love the idea of listening to their favorite tunes non-stop, whenever they want, and from wherever they like without the hassle of buying or carrying CDs. However, musicians, especially emerging artists, worry about royalties. After all, when most fans listen to their songs on music streaming services, how will they earn money?
This article aims to lift the curtain on royalties in on-demand music services and help you calculate how much you can earn. But before that, let’s learn whether it’s even worth it to be present on Spotify.
The recorded music industry isn’t what it used to be. The release of iTunes in 2003; followed by the later release of Spotify in 2006 forever changed the way people consumed music.
Approximately 286 million people use Spotify to consume music,
with roughly 130 million of those listeners being paid subscribers. That’s an incredible amount of people, and we’ve not even mentioned other music streaming services yet!
Despite the incredible numbers of music fans taking to music streaming services, there’s still one big issue that lurks over the streaming world… Music royalties! But first, let’s have a look at the types of streaming platform…
The Two Sides of On-Demand Music
Just as a coin has two-sides, on-demand music streaming services do too. Platforms like Spotify have indeed disturbed the smooth flow of a musician’s earnings. Before these platforms, a singer/songwriter signed with a record label could easily earn around 10 to 15 percent on each CD sold. Thus, they could make a profitable living by selling millions of copies.
But on the flip side, music streaming platforms offer more benefits than what meets the eye.
Not only do you get opportunities to earn, but you can also grow and become a successful musician quicker than before. Spotify has become the largest and most popular music streaming platform worldwide, proving to be an invaluable tool for musicians.
Spotify helps you earn royalties on music and is excellent for:
Music discovery
Promotion
Getting your music heard by an audience that wouldn’t usually listen
Once an emerging artist gets on Spotify active playlists, it allows them to get found and heard by new listeners. This further helps you grow your fan base. Moreover, uploading tracks on Spotify is also cheaper than getting CDs to stores.
Put simply, Spotify gives artists a platform to earn through streaming royalties while building a legacy as a musician independently and cost-effectively.
Now, let us walk you through what streaming royalties are so you get a solid understanding of how you will generate and earn money on Spotify.
Streaming Royalties—What are They?
These are payments to right holders (including record labels, artists, publishers, songwriters, etc.). The fee is paid each time a listener plays a song on Spotify. This is how musicians earn on Spotify.
Each song is split into two separate categories of copyrights:
Composition (lyrics or melody) copyrights: Owned by publishers and songwriters
Sound recording copyrights: Owned by the recording artists and record label
As a result, streaming royalties are also split among all of the rights holders. Once the artist’s song is recorded and uploaded on Spotify, fans can stream and listen to it. The songwriter or composition rights holder gets paid through collecting societies like PRO (Performance Rights Organization) or MRO (Mechanical Rights Organization), while the recording artist gets paid through their record label.
How Can You Calculate Your Income on Spotify?
The fees paid to the rights holders largely depends on:
How long the song was streamed (please note that the royalty paid is less when only half of the song is played)
Whether the listener has a free account or paid subscription
The artist’s royalty rate
The relative pricing and currency in different regions
It is nonetheless estimated that on every stream, Spotify pays £0.0031. This is approximately $0.0043. Therefore, to make a minimum wage, you will need at least 366,000 streams on your single.
All the factors discussed above can make it seem practically impossible to accurately calculate how much you can make from a certain number of Spotify streams. That’s where the Music Royalty Calculator comes in.
Playlist Streams have created a Music Royalty Calculator to make it easy and straightforward for you to estimate your potential income on Spotify.
Music Royalty Calculator—How to Use it
Using Music Royalty Calculator is as easy as 1, 2, and 3. All you have to do is:
Select the currency you want to get paid in
Enter the estimated number of streams that you think your track will receive
Click the ‘calculate’ button.
The relative pricing and currency in different regions
Once you follow all these three steps, you will get an estimated amount of estimated royalties you can make on the number of streams entered in the calculator.
However, please note that the streaming royalties generated by this calculator are only an estimation of what you can potentially earn. It is not 100 percent accurate and actual payouts are variable. You can make more or less based on many factors affecting streaming royalties. This should only be used as a guide.
Music Royalty Calculator—How to Use it
Using Music Royalty Calculator is as easy as 1, 2, and 3. All you have to do is:
Select the currency you want to get paid in
Enter the estimated number of streams that you think your track will receive
Click the ‘calculate’ button.
The relative pricing and currency in different regions
Once you follow all these three steps, you will get an estimated amount of estimated royalties you can make on the number of streams entered in the calculator.
However, please note that the streaming royalties generated by this calculator are only an estimation of what you can potentially earn. It is not 100 percent accurate and actual payouts are variable. You can make more or less based on many factors affecting streaming royalties. This should only be used as a guide.
How you Benefit
When you calculate potential earnings on Spotify with our Music Royalty Calculator, you can benefit in numerous ways:
You can have a good idea of the monthly income you can make on Spotify
It can help you stay motivated and focused
With an estimate in hand, you can budget your next single release in a better way
Imagine if your single gets listed in an active Spotify playlist. You can easily get heard by millions globally and start earning streaming royalties. To ensure this, select a package with Playlist Streams to start a campaign. We provide organic playlist promotion and get you listed on active Spotify playlists, maximizing your exposure to real listeners.
We help artists grow their streams and revenues steadily and experience maximum exposure. Click here to sign up and experience fame and fortune like never before.
How you Benefit
When you calculate potential earnings on Spotify with our Music Royalty Calculator, you can benefit in numerous ways:
You can have a good idea of the monthly income you can make on Spotify
It can help you stay motivated and focused
With an estimate in hand, you can budget your next single release in a better way
Imagine if your single gets listed in an active Spotify playlist. You can easily get heard by millions globally and start earning streaming royalties. To ensure this, select a package with Playlist Streams to start a campaign. We provide organic playlist promotion and get you listed on active Spotify playlists, maximizing your exposure to real listeners.
We help artists grow their streams and revenues steadily and experience maximum exposure. Click here to sign up and experience fame and fortune like never before.
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#1 Song Pitching Analytics System for Spotify User Playlists in the World.
#1 Song Pitching Analytics System for Spotify User Playlists in the World.
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