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What is a Royalty Calculator?
A Royalty Calculator is a tool designed to estimate earnings from streaming platforms, it takes several factors into account. These may include the number of streams, the platform used, and specific rates per stream, which can vary significantly. The streaming calculator is useful for forecasting potential earnings from digital platforms.
Earnings per stream can vary widely across different streaming platforms and depend on several factors, including the artist's agreement with the platform or record label, the listener's subscription type, and geographical location. Generally, payments per stream are a fraction of a cent, and the total amount earned by an artist or content creator is a product of these per-stream rates and the total number of streams their content receives. Typically, the range falls between $0.003 and $0.008 per stream for the major streaming platforms.
Here is a rough range of what each platform pays per stream.
How are streaming royalties calculated?
Streaming royalties are determined through a complex process that involves multiple stakeholders, including streaming platforms, copyright holders, and sometimes, intermediary collecting societies. The calculation takes into consideration factors such as the total revenue of the platform, the artist's contract terms, and the total number of streams. Additionally, the country where the music is played and the type of subscription (free or paid) can influence the final amount paid per stream.
This streaming royalty calculator uses a combination of industry estimates and over five years of real payout data from over 50,000 distribution customers. Together, these represent the most accurate possible estimates of what you could earn when your music is streamed on Spotify, Apple Music, Amazon Music, YouTube Music, Tidal, Pandora & Deezer.
What factors influence royalty payments from streaming services?
This streaming royalty calculator’s estimates are based on proprietary data and general industry reporting. They reflect averages reported by artists and industry analysts but they are not 100% accurate and can only offer an idea of how much streaming services typically pay out.
Most streaming services payout streaming royalties from revenue pools that group artists. Artists are grouped into revenue pools based on audience size, genre and other considerations. Revenue is then split by the proportion of streams shared between each artist. For example, in a $100 revenue pool shared by two artists, if you get one stream and the artist gets $99, you get $1 and the other artist gets $99. Revenue pools are a major reason why streaming payouts are not consistent and change from month to month.
Spotify claims to have paid over 4.5 billion dollars to independent artists in 2023. YouTube says it paid $6 billion to rights holders in 2022. Still, it's unclear how much independent artists get from that amount. Spotify by comparison to YouTube paid out over $9 billion to music industry rights holders in 2023, $4.5 billion of which it says went to independent artists.
Are royalty rates consistent across different streaming platforms?
No, royalty rates are not consistent across streaming platforms.
Each platform calculates its streaming payments differently, meaning some pay higher rates per stream than others.
Generally, the best way to maximize streaming royalties is by finding effective ways to promote your music and generate more streams.
One easy tip is to claim your profile on each streaming platform and add your bio, press pictures and other content.
For example, claiming your Spotify for Artists profile gives you access to a ton of features that help you best present your music on the platform. If you claim your profile, you also get the ability to apply for playlisting on its editorial playlists whenever you have an upcoming single.
Other general tips include adding accurate information about your music, the genre that best describes it and proper formatting when distributing your music via a distribution service.
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