How Musicians Make Money From Music Streaming.

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This article aims at helping upcoming artiste have the full understanding of making money from music on streaming stores.

To learn more, please watch the video below.


In 2018, the Global Music Market reached its fourth year of growth.

It is estimated that, over $19 billion has been generated in revenue. And music streaming alone accounts for half of that amount.

It is estimated that more than 255 million are subscribed to one streaming store or the other worldwide.

What is Music Streaming?

Music streaming is a means by which internet users listen to billions of music using a web or mobile app.

And in so doing, they do not have to download and store songs as files in their media storage.

History of Music Streaming

It all began in 2001, when peer-to-peer file sharing system Napster was created.

Few years later, Appleā€™s iTunes was founded. And in 2006, two swedish gentlemen, Daniel Ek and Martin Lorentzon, founded Spotify.

And today, about 68% of music consumers on the internet are using one music streaming service or another.

How Streaming Platforms Make Their Money.

Currently, there are more than 150 streaming platforms on the web. And they all have a wide range of varying features.

Apple iTunes and Spotify takes the lead.

And below are the two known ways they are using to generate revenues.

  • Paid Subscriptions: Users are given a variety of subscriptions ranging from monthly to yearly basis. Although most of these platforms offer free usage, the free users are presented with Ads, which are intended to drive them towards upgrading their free package to a premium one.
  • Adverts: In a bid to get exposure, advertisers pay huge amount of money to streaming Platforms. And the platforms in turn display these Ads consistently to their teeming users. Most of the playlists on streaming platforms are also sponsored.

How Musicians Make Money From Music Streaming.

Both Apple Music and Spotify claims that, 70% of the revenue they generate from paid subscriptions and adverts. Are the money they are using to pay, both record labels and independent artiste, whose music are being streamed on their platforms.

They make the payment based on the total number of streams each artiste is getting. The formula they use is called the Pro-Rata Model.

For instance, if $1 Million is generated in revenue, and a particular artiste accounts for 1% of all the streams. Then he or she is going to receive $100,000 in royalties.

But still, most artiste are not okay with this formula. And for that reason, they Vogue for a fairer and more User-Centric Model.

A formula which will allow artiste to receive payment, based on which artiste each paid user is using their subscription fees to listen to the most.

Some upcoming platforms are keying into this formula. And this might pressurize the bigger platforms to follow suite.

In other words, artiste are trying to pressurize streaming platforms into initiating features, that will have them being paid without so much algorithms.

For instance, they want artiste to receive payment once their song is being listened to by a subscriber for 30 seconds.

This method then seems to be the reason why, more musicians are beginning their songs with a chorus, intended to grab listeners attention.

How To Get Your Music On Streaming Platforms And Get Streams.

Before you attempt putting your songs on streaming platforms. There are basic things you must know and do. And we can help you do so on our Advisors Class.

So if you are interested. follow this link to subscribe.

Or click here to chat me up on WhatzApp.

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