Ways Artists Make Money From Streaming

Most people are aware that when their music is heard on sites such as Youtube Music, Amazon Music, Apple Music, Spotify, Pandora, Deezer, and Tidal artists get paid. However, most of us are unaware of the specifics as to how these payments operate, which can occasionally result in misunderstandings. Additionally, many if not most artists will necessarily get compensated equally over the same number of segments.

Let’s delve in and dissect some key tenets that govern how musicians get compensated for streaming their music.

WHICH WAY DOES THE MONEY FLOW?

You might be curious to know: Where does the initial funding for royalties come from? In essence, the streaming services set aside a portion of their earnings to pay royalties.

There are two primary ways that streaming platforms can make money:

1-Subscription

Users of the portal must pay a monthly membership fee in order to access the music there. This is referred to as a Premium package as well.

2-Ads

While using the site, users do not give any money; instead, they view and/or hear advertisements. For exposure to viewers, advertising pay the streaming platform. It’s sometimes referred to as a Freemium model.

While some services, such Apple Music or Tidal, solely offer premium plans, others, like Spotify or Deezer, offer combined Freemium and Premium alternatives.