08/03/2016
What are streaming services like Apple Music, Spotify, and YouTube paying artists? Here’s what one indie label found out.
Sadly, most artists and labels have no idea what they should be getting paid by streaming platforms like Spotify and Apple Music, and none of these services are offering any guidance. So, we started publishing whatever royalty statements we could get our hands on (send us yours at [email protected] and help the artist community out).
Most recently, we’ve been working with an independent r&b, rap/hip-hop label to test the waters on a range of services. Alongside some low-lying payments, they also discovered some outrageously high per-stream payments from Tidal and Microsoft Groove (who are now paying several dollars per stream, and no, that’s not a typo, scroll down).
After a test on their catalog, here are the resulting payments that came through. These are before distributor INgrooves took their cut and applied other costs. All of these are per-stream payments.
You’ll notice that Microsoft Groove is not part of this graph. The reason is that their payouts are so high right now, it would make it impossible to see the relatively tiny payouts from everyone else (scroll down and you’ll see what I mean).
And, here’s a complete breakdown of everything captured. Aggregated per-stream payouts across all countries at the top, with specific countries, listed where data was available.
Downloads Drop 18.5%, Streaming Gains 38.4%. In Just 3 Months at Sony Music
Daniel Adrian Sanchez
Sony Music Entertainment released their first quarterly earnings report from April 1 to June 30, beating out analyst’s expectations in posting an 8.7% increase in sales to $1.374 billion. This is a strong increase from the same quarter last year, when Sony reported $1.27 billion in sales. At the same time, however, they also reported an operating income decline from last year’s $310 million to $155 million, thanks in part to the “negative impact of the appreciation of the yen against the U.S. dollar”.
Seemingly proving that music streaming is indeed the future of music industry, Sony credits the quarter’s revenue increase to growth in streaming and its visual media and platforms. Streaming makes up for $299 million, a sizable 38.4% increase from last year’s $216 million. Digital revenues also grew 10% to $461 million. Download revenue, however, fell 18.5% to $162 million. Physical music formats sales also fell, accounting only for 32.1% of the music group’s revenue, down from $324 million, or 37.2% of total revenue. Sony’s other music revenue, likely synch licensing payments and royal payments totaled $131.7 million, up slightly from last year’s $127 million.
The strongest albums in this quarter that helped drive this increase in sales were Kazumasa Oda’s Anohi Anotoki, and Meghan Trainor’s Thank You, among others, with Beyoncé’s Lemonade becoming Sony’s top-selling recorded album.
Sony’s overall music revenue was hampered by having to take a “re-measurement” write-off in its equity interest in independent music distributor The Orchard. Sony bought out the remaining equity stake in The Orchard from Dimensional Associates in March 2015. The company was estimated to have been valued close to $400 million at the time of the buy-out. The Orchard was founded in 1997 by producer Richard Gottehrer and manager Scott Cohen as a way to foster independence and creativity in the music industry.
Apple Music (paid):
Overall: $0.0119
Australia: $0.01032
Canada: $0.00773
France: $0.01356
Germany: $0.01056
Greece: $0.01150
Indonesia: $0.00801
Italy: $0.01380
Japan: $0.01267
Kazakhstan: $ 0.00988
Mexico: $ 0.00460
New Zealand: $ 0.01166
Singapore: $0.009594
South Africa: $ 0.005599
Switzerland: $ 0.01914
United Kingdom: $0.015994
United States: $ 0.01105
Apple Music (free trial):
Overall: $ 0.001703
Australia: $ 0.001953
Canada: $ 0.001741
Germany: $ 0.002076
Mexico: $ 0.000965
Netherlands: $0.002421
Portugal: $ 0.001386
Russian Federation: $ 0.000425
Singapore: $ 0.001585
South Africa: $ 0.002256
Turkey: $ 0.000695
United Kingdom: $ 0.00252
United States: $ 0.001985
Google Play Music
Overall: $ 0.008516
Germany: $0.009078
Switzerland: $0.01317
United Kingdom: $0.01519
United States: $0.007459
Spotify (subscription)
Overall: $ 0.006111
Costa Rica: $ 0.004420
Germany: $ 0.008198
Mexico: $0.001621
New Zealand: $ 0.007034
Norway: $ 0.004889
Peru: $0.003587
Spain: $0.003212
Turkey: $ 0.002988
United Kingdom: $0.01194
United States: $0.007339
Spotify (free)
Overall: $0.001348
Argentina: $ 0.000109
Australia: $0.0001169
Brazil: $ 0.000243
Canada: $ 0.000773
Dominican Republic: $ 0.000120
Finland: $ 0.000830
Germany: $ 0.000543
Hong Kong: $ 0.000295
Mexico: $ 0.001621
New Zealand: $ 0.000656
Peru: $ 0.000103
Spain: $ 0.003212
Sweden: $ 0.001016
United Kingdom: $ 0.001352
United States: $ 0.001437
YouTube
United States: $ 0.00001212
(only ‘United States’ appeared in the statement).
Microsoft Groove
United States: $4.69
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