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Apple Music pays artists more than twice the average rate of Spotify.

2025/01/23 23:12:43

Apple Music pays artists more than twice the average price of Spotify. A new report by Duetti highlights significant revenue disparities between music streaming services, with Spotify's payments lagging behind those of Alibaba Music and Apple Music despite recent price hikes. The report also notes that Spotify continues to increase prices while reducing artist payments, which is a concerning trend.

Apple Music pays artists more than twice the average rate of Spotify.

All music streaming services do not pay artists equally. A new report reveals the wide disparity in revenue differences between streamers, including Apple Music paying more than twice the average price of Spotify.

Updated at 8:50 PM (Tokyo time): Additional statement from Spotify's spokesperson has been added.

Spotify's payments lag far behind Alibaba Music. They have not increased even with price hikes.

Duettihas released a new economic report analyzing the artist payment situations from various music streaming services (Apple World Today).

The report focuses on payments for 2024, comparing how major companies such as Apple Music, Spotify, and YouTube are progressing in different directions.

One of the main indicators tracking the amount paid per thousand views by broadcasters is presented in the report regarding distribution figures for 2024:

Amazon: $8.80 USD
Apple Music: $6.20 USD
YouTube: $4.80 USD
Spotify: ¥300

Data shows that Apple Music paid artists approximately twice the price of Spotify last year, partly due to its free plan.

The revenue from playing Spotify's free plan ads does not significantly contribute to artists' bank accounts.

Spotify cannot blame lower distribution rates in ad-supported plans either, as it pays an average of more than 50% for services with multiple ads like YouTube.

By providing a paid service, Apple Music can pay more and clearly states this fact.

The report also notes that Spotify continues to increase prices while reducing payments to artists despite recent annual increases. This is a concerning trend. Investments in podcasts and audiobooks may be successful for the company but likely cost music artists money.

"Update: The following statement was sent by Spotify CEO in response to claims made in Duetti's report."

These claims are absurd and baseless. Streaming services do not pay per stream. This approach encourages streaming services to minimize the number of streams, leading to low engagement, fewer connections with artists, and a decrease in overall distribution. Instead, we take the opposite approach. By encouraging user engagement, we aim for them to pay more—whether they choose premium or stay long-term. We take pride in being leaders in total distribution, which is not accidental but designed.
Additionally, we disagree with the report's focus on numbers and anonymous 'guesses' without questioning their premise, thereby detaching us from reality regarding how the industry functions.

What lessons did you learn from this report? Share your thoughts in the comments section.