FVMusicBlog

If you’re a DIY musician making great music that you want to be discovered by new fans, what’s the best way to do it?

Spotify is the go-to place for music lovers to hear new music, so it makes sense to promote your music there.

However, one big question hangs in the air… can you really make money from your music being streamed on Spotify? 

Or are your tracks just going to get lost in the 60,000 other releases that get uploaded every day?

Remember, you can only continue to make music if you have the capital to fund future releases, and as a DIY artist making a living from music, income should be high up on your to-do list.

So, should promoting your music on Spotify be a priority in 2024?

Well, the answer lies in the numbers. 

Spoiler: It’s a resounding YES! But don’t just take my word for it. Let’s take a deeper dive into the data…

Spotify numbers

(The left-hand side of the graph shows the number of artists, while the bottom illustrates the $USD paid out to the artists).

The truly exciting numbers in the results can be found in the payouts in the $10k+ to $100k+ range. 

57,000 artists made over $10k in streaming on Spotify alone. 

17,800 artists made over $50k.

And there were over 10,000 artists who made over $100k solely from fans streaming their music on Spotify.

By being transparent about what Spotify really paid to artists in 2022, we can see what is possible for you going forward.

And with the right strategy in place, there is no reason why your music can’t reach these heights too.

“Streaming doesn’t pay!” – Actually it does!

I hear people say, “Streaming doesn’t pay artists!” With numbers like those above, it’s clear that it does!

But there is a caveat attached to everything, and this instance is no different.

Streaming does pay artists… but you need a clear strategy to get your music heard for it to work.

And remember, these figures are only the numbers for Spotify alone. 

Spotify is the largest streaming site BUT Apple Music, Tidal, Deezer, etc., also have vast numbers of daily streams, impacting musicians’ take-home pay.

So if you can get your releases working for you on all of the major streaming platforms, you are in for guaranteed success.

Spotify Payout Statistics

Fact: Spotify paid over $8 billion to artists in 2022 alone. 

This is more than any other streaming service, making them king of the streaming world.

And!

• In 2022, Spotify broke the world record for the most significant yearly payout from any retail business.
• Over 1000 artists earned over $1 million through Spotify’s royalties in 2022.
• Over 50,000 artists generated $10,000.
• Major record labels earned over $4 billion in profit. 

Spotify Overall Statistics

Next, let’s look at some overall Spotify facts to help you begin planning your release strategy on Spotify. 

And if you look at Spotify’s growth, it is still growing year on year…

But HOW do you make money from Spotify?

How are these artists actually achieving these figures? Let’s break down the mechanics…

1. Streaming Royalties: Spotify pays musicians based on the number of streams their songs receive. While the exact amount per stream can vary, it typically ranges from $0.003 to $0.005 per stream. Therefore, the more streams a musician’s songs receive, the more money they can make.
2. Playlist Placement: You can achieve this by getting your music featured on popular and favourable playlists. This can significantly increase your streams, boosting your earnings. This could be through Spotify’s editorial or user-generated playlists with large followings.
3. Distribution Royalties: Musicians can distribute their music to Spotify through digital distribution services like TuneCore, DistroKid, or CD Baby. These services often charge a fee or take a percentage of royalties in exchange for distributing music to various platforms, including Spotify.
4. Merchandise and Ticket Sales: Spotify can also serve as a platform for promoting merchandise sales and ticketed events such as concerts and tours. Artists can use their Spotify profiles to showcase upcoming shows and link to merchandise stores.
5. Direct Licensing Deals: Some more prominent artists negotiate direct licensing deals with Spotify, bypassing traditional record labels. These deals can offer favourable royalty rates and greater control over monetising music on the platform.
6. Collaborative Promotions: Collaborating with brands or other artists for sponsored content or exclusive releases can generate revenue. Spotify has collaborated with brands like Coca-Cola and McDonald’s for promotional campaigns.

Spotify can be a significant revenue stream for musicians, but it’s just the tip of the iceberg. The giant streaming service is just one part of a broader strategy for generating income in the music industry.

Wrap up

So I’m here to dispel the myth that streaming doesn’t pay… It does!

Whether you like it or not… Spotify is the biggest platform in the streaming world and the gigantic power engine doesn’t show any signs of slowing down any time soon.

So if you want to make money from your music on the service, you need an action plan. 

As a DIY musician, you must find strategies to ensure you are one of the artists in that $50k+ bracket.