Streaming Payouts Drop to New Low: Artists Now Earn Just $3 Per 1,000 Streams

The reality for musicians in the age of streaming just keeps getting tougher.

Payouts from music streaming platforms have been steadily declining, and recent data shows artists are earning even less than before. In 2021, musicians made an average of $4.04 per 1,000 streams. By 2023, that number dropped to just $3.41—and it’s not looking up.

A recent analysis by Duetti explored payouts from eight major streaming platforms, including Spotify, YouTube, Amazon Music, and more. Here’s how the platforms compare:

1. Amazon Music: The leader in payouts at $8.80 per 1,000 streams. This higher rate is largely due to Amazon bundling their streaming service with Prime memberships, boosting payouts.
2. TIDAL: Coming in second at $6.80 per 1,000 streams, thanks to a focus on high-quality audio and exclusive content.
3. Apple Music: At $6.20 per 1,000 streams, Apple Music benefits from its presence in higher-priced markets and its refusal to offer free, ad-supported options.
4. YouTube (including YouTube Music): Pays $4.80 per 1,000 streams, boosted by a growing number of subscribers opting for premium services over ads.
5. Spotify: Pays just $3.00 per 1,000 streams, making it one of the lowest-paying services.
6. TikTok: A bit of an outlier, TikTok pays a mere $0.50 per 1,000 videos created, not streams.

Despite raising its subscription prices, Spotify’s payouts continue to fall. In 2021, artists earned $4.08 per 1,000 streams; by 2024, that figure had dropped to $3.51.

Why the decline? According to the report, the reasons include Spotify’s high usage rates, its reliance on discounted/free plans, and the controversial Discovery Mode program. Discovery Mode, which started as a test in 2020 and became widespread by 2023, allows artists to pay a 30% royalty cut for more exposure through Spotify’s algorithm.

More independent artists are joining Discovery Mode, pushing its share of Spotify streams from 6% in 2021 to 26% in 2024. However, this trend has been criticized, as it results in lower royalties for artists.

Spotify, however, disputes these claims. A spokesperson stated, “No streaming service pays per stream because that would incentivize them to reduce streams.” They insist that their payout model is by design and that they remain the leader in total payouts.

If you’re an artist in a niche genre, there’s some good news. Music genres like Goth Punk and Phonk are earning about 8% more per stream than mainstream genres like Pop, Hip-Hop, and Rap in 2024. In some cases, niche genres earn up to 30 cents more per 1,000 streams.

Why are these smaller genres doing better? Fans of niche music are more likely to pay for premium subscriptions rather than use the free, ad-supported tiers. Additionally, these artists are often skipping programs like Discovery Mode, avoiding the reduced royalties in exchange for exposure.

Despite the higher earnings, niche artists still face challenges, especially when compared to the viral hits dominating streaming services. TikTok’s influence has caused a surge of viral tracks, but the report reveals that only 15% of TikTok’s viral hits maintain a long-term impact on streaming platforms.

TikTok’s power is undeniable—84% of songs on the Billboard Global 200 chart in 2024 began as viral hits on the platform. But viral success doesn’t always translate into sustained streaming growth. According to the report, only 15% of TikTok’s viral songs continue to gain traction on platforms like Spotify long-term.

Streaming continues to be a double-edged sword for musicians. While platforms like Amazon Music and TIDAL provide higher payouts, the overall trend shows that artists are making less money per stream year after year. Additionally, the growing reliance on streaming algorithms and programs like Discovery Mode raises concerns about the future of fair compensation for musicians.

For now, it’s clear: the days of earning big from streaming alone may be behind artists, and the search for sustainable income is more urgent than ever.

Source: Headphonesty – Streaming Payouts Hit New Low as Artists Now Earn Just Around $3 per 1,000 Streams