Home Music Spotify’s royalty rate for Indie Artists up just $0.001 in 2011

Spotify’s royalty rate for Indie Artists up just $0.001 in 2011

Spotify and other streaming services were the talk of the Midem conference which just wrapped up in Cannes. During the gathering, U2 manager Paul McGuiness labeled Spotify as nothing more than a “promotional medium”, while Sony’s Denis Kooker claimed that streaming services “do not cannibalize sales”. 2011 saw Spotify’s reach widen and it subscriber base increase considerably, but how does this affect independent artists?

THE REAL STATS

Tunecore’s new simplified dashboard makes comparing your different revenue streams an easy and revealing task. So I would like to share stats from a couple of releases for different bands for the year 2011. These are separate albums from separate acts. I have used releases that have been out for a couple of years so that they do not have new release peaks in them, as a result the streams were pretty consistent through the year.

ROYALTY RATES

•ALBUM #1 – For Jan 2011 to Dec 2011
6764 Spotify Streams: $34.48 ($0.005 per stream)
•ALBUM #2 – For Jan 2011 to Dec 2011
4833 Spotify Streams: $25.34 ($0.005 per stream)
Here are the difference in royalty rates from the first 6 months of 2011 and the second half.

•Spotify Royalty for first half of 2011 $0.0046
•Spotify Royalty for second half of 2011 $0.0056
If I compare the royalty from the first month of plays to the last month it looks like this:

•Jan 2011 – $0.0036′
•Dec 2011 – $0.0043

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