SongLifty Logo Black

How Does Spotify Pay Its Artists?

Spotify is the largest music streaming service online, with 422 million users across 183 markets.

The company pays artists for the right to use their copyrighted songs and recordings on the platform. This is known as royalty.

Types of Royalties

Every song has two parts: the sound recording and the composition. The former describes the sound signature and the latter the lyrics and melody.

A streamed song generates both recording and publishing royalties.

  • Recording Royalties

The amount of money Spotify pays to artists with the right to stream recordings on the platform. Payment is made through their label or distributor. 

  • Publishing Royalties

Publishing royalties are paid to songwriters and publishers of recordings used on the platform.

Calculating Royalties for Artists

Spotify pays royalties to artists using a method called Streamshare.

This process calculates each artist’s portion of the total streams on the platform every month. It then multiplies that with the company’s net revenue to establish how much it owes a particular rightsholder.

The net revenue represents what is left when taxes, processing fees, and commissions are subtracted from the income of the streaming service.

How Artists Get Paid

Spotify pays record labels or distributors once a month using Streamshare. Artists then get paid according to the contracts they have with these labels. The company has no hand in these agreements.

Scott Boyle

Scott Boyle

Hi, I'm Scott Boyle, a music producer, trumpet player, and marketer with a passion for all things digital. My journey in the industry started when I was just a teenager, tinkering with Ableton Live on my computer. Since then, I've worked with some of the biggest names in the UK, helping them to promote their music through digital platforms. With my expertise in marketing and my love for music, I'm confident that I can help artists take their careers to the next level. I'm always eager to share my knowledge with others and explore new ideas, so feel free to reach out and say hello!


SongLifty Logo
Music promotion and marketing tips for independent artists. Learn how to reach more fans, build a larger audience, promote your music videos and more.

Share Article

Recent Posts

Search This Bolg

Our Services

Music Promotion Services

We know how music marketing is challenging. Use our music promotion services to build and grow your audience today!

Music Promotion For Spotify

Artists from all around the world use our Spotify promotion services. With one of the best and safest promotion companies in the industry, you can purchase Spotify plays and raise your social media accounts.

Best Seller

Video Promotion For YouTube

Want your videos to get the attention they deserve? Stand out from the crowd with our YouTube promotion packages. Increase the number of people who watch your videos, and grow followers on your YouTube channel.

Music Promotion For SoundCloud

With a tailored strategy to increase your audience, we help you form a vivid presence on SoundCloud. We do that, by promoting your content, boosting your socials, and keeping in check your SoundCloud insights.

Social Promotion For TikTok

TikTok is a merry mix of people from all over the world and a home to many musicians for interacting with their fans, making it a great place to share and promote new music. Sign up with us and let us help you promote music on TikTok.

Social Promotion For Instagram

We understand how artists feel after launching an Instagram account: getting new followers can be really challenging. With our social promotion for Instagram, we help you grow your followers and increase engagement on your posts.

Social Promotion For Facebook

When it comes to music promotion, Facebook can prove to be a very powerful tool! With billions of users worldwide, it’s a great way to spread the word on new content and promote yourself in multiple communities at once!