Royalty Payouts From Music Streaming Companies Revealed

music streaming royalty payout breakdownWhat does streaming music pay in 2016?  That’s becoming an increasingly tricky question.  But here’s the latest breakdown from an artist royalty report, courtesy of, Paul Resnikoff at DigitalMusicNews.com:

It takes 776 streams on YouTube to earn a dollar, and just 32 on Microsoft Groove.  On SoundCloud, you’ll need 766 streams to earn $1, while it only takes 96 from the SoundCloud GO premium service.  In between, there are streaming music services Spotify, Apple Music, Deezer, Rhapsody, TIDAL, Google Play, and VEVO, all paying wildly different sums for the same exact song.

Why the polar extremes?  We’ve been receiving — and posting — lots of streaming payout information on Digital Music News, only to learn that payouts aren’t normalizing over time.  Instead, they’re become more divergent over time.  Just recently, an independent hip-hop and r&b label shared an entire statement with Digital Music News, one showing multi-dollar payouts from Microsoft Groove (via Xbox), and almost worthless payouts from YouTube (take a look).

These numbers are alarming, but this is why I speak so much about music advocacy. I encourage all songwriters and producers, whether established or aspiring to become an advocate for your creative music rights. Click here to join the Songwriter Equity Act today.

ASCAP president Paul Williams said in a statement: “The Songwriter Equity Act represents an important first step toward updating an outdated music licensing system that treats songwriters differently than other copyright owners and prevents us from earning a fair market royalty rate when our music is streamed or downloaded online.We look forward to working with policymakers to reform the broader regulatory framework, including ASCAP’s outdated consent decree with the DOJ, so that music licensing better reflects the way people listen to music today.”

BMI president & CEO Michael O’Neill said in a statement: “Through the Songwriter Equity Act, songwriters will no longer be disadvantaged by the fact that courts cannot legally consider all relevant benchmark deals — key evidence in determining fair market rates.  Not only is it an important step on the road to fairness for BMI’s more than 650,000 songwriters, composers and publishers, but this bill will also help address ongoing concerns about the impact of a rate disparity that values the performances of sound recordings at a level approximately 12 times greater than the actual musical compositions from which they are created.”

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