Spotify Wants to Lower Pay Per Stream Rates Even Further


Spotify (as well as other major platforms like Apple, Amazon, and Pandora) has filed a proposal to lower royalties rates for recording artists and songwriters even further. The companies think that streaming royalties should be low. In fact, they should be the lowest in history.

The music industry has been changing rapidly over the past few years. Artists have had their revenue streams shrink enormously because of among other things the rise of streaming services such as Spotify which offer their content at very reduced prices or even for free. With many struggling musicians choosing between making ends meet or paying rent, this cannot be good news!

What does this mean for musicians like you?

Most musicians are unable to earn a sustainable income from their music, which in turn means that they cannot afford recording new albums or songs. This could lead to an extinction of the very music industry that Spotify and its counterparts rely on for their own profits!

Spotify has also been accused many times before by big-name artists such as Taylor Swift and Radiohead for shoddy payouts to artists.

With the lower rates that this proposal is suggesting, it seems as though Spotify wants even less money going towards its very own suppliers which are musicians and songwriters.

Spotify Royalties Rates

So what are the numbers?

The National Music Publishers’ Association (NMPA) had sought an increase of the headline rate to 20%, but streaming companies are now proposing a decrease close to pre-2018 levels with rates at 10.5%. This would be the lowest royalties rates in history!

NMPA President & CEO David Israelite completely rejects the idea that music streaming companies can’t afford higher rates.

Spotify’s earnings results for the third quarter of 2021 are out and are reaching the total revenue of $2.90 billion dollars, up 27% compared to the same period the previous year.

Spotify Royalties Rates

The company is making a lot of money, but the musicians who produce their content are not seeing this increase.

The NMPA thinks that the current rates are already too low and should not be lowered any further.

Many artists have seen their revenue reduced when streaming became popular. This is not sustainable in the long-term! It would be a tragedy if this trend continued and artists were unable to make any sort of living out of music anymore because it would be just too low.

If you are a recording artist or songwriter, this is something that should concern you because it could impact your own future and ability to earn money from making music.

What can be done about it?

As musicians, it’s important that we use our voices no matter how small. Whether you’ve got 100 followers on Instagram or 2 million fans across social media platforms – we have to start educating people on what artists are actually getting per stream compared to what people think that they’re probably getting.

People need to know what’s happening. And we as artists need to use our voices.  We can’t be silent. We need to do something about this. We need to be heard.

If you are concerned about the current rates, please comment on Spotify’s proposal as well as share this article with your friends so that more people can find out what is going on.

Would you accept lower royalties from Spotify or do you want a bigger cut from their revenue?

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