Thursday, July 9, 2015

How Much Is A Music Stream Actually Worth?

There's a lot of confusion in the marketplace about how much a music stream is worth. To say that it's a complicated issue is an understatement.
  • It depends upon all of the following factors:
  • What type of service (interactive like Spotify, or non-interactive like Pandora)
  • Which tier (free or paid subscription)
  • Which territory it's played in (they all pay different royalty rates)
  • Your marketshare (on Spotify you get paid more if you get played more)
As you can see, it's impossible to say exactly what each stream is really worth, and the best we can do is get an average. Billboard has done just that with a great infographic that gives you an approximate worth of a stream coming from Spotify and Pandora.

Value of a Music Stream image


Paul Laurence said...

Hello Mr. Owsinski,

Thank you for this article. To clarify if you would. For Spotify, is that per stream 1 dollar or 1 cent for paid subscription. I'm a little confused because of the decimal point after the 1.

Thank youL

Bobby Owsinski said...

It's 1 cent per stream from the paid subscription tier, Paul.

Paul Laurence said...

Thank you!


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