A decade ago, the music industry was heading for a complete exit from the landscape. The disruptive effects of peer-to-peer file sharing have halved music revenues, raising serious doubts about the future of the industry.
However, the growing popularity of premium streaming services has been the savior of record labels and artists.
For the first time since the mid-1990s, the music industry has seen an upward trend, and revenues grew rapidly by 12% in 2018 – reaching nearly $ 10 billion. In short, people have shown that they are still willing to pay for music.
Although streaming services such as Spotify and Apple Music are increasingly contributing to revenue, recent data from The Trichordist reveals that these services pay extremely different rates per stream.
We would expect streaming services to have fairly similar payment rates every time a song is played, but this is not the case. In reality, the streaming rates of the big players in the market – which have very similar catalogs – are scattered all over the map.
Below is a full breakdown of the number of streams needed to earn a dollar on different platforms:
Napster, once the number one public enemy in the music industry, has some of the most generous streaming rates in the industry. The downside is that the brand currently has a market share of less than 1%, so getting a large volume of tracks on an album is unlikely to happen for most Arti â¢ fish.
On the opposite side of the equation, YouTube has the highest number of plays per song, but the lowest pay-per-view stream. It takes almost 1,500 plays to earn a single dollar on the video platform owned by Google.
Spotify, which is now the largest player in the streaming market, is at the lower-middle end of the compensation spectrum.