Most of the company’s revenue comes from subscription fees and ad revenues (though some of the revenue goes to the developers to fund their games; for details, see our latest earnings report from May 2017).
How often does Spotify pay for 1 million streams?
In April 2017, in the course of six weeks, Spotify paid out $11.8 million as it did the previous time around.
How much more do Spotify pays in streaming royalties per play for one million streams?
In February 2008, Spotify paid $2.4 million per time for one million streams of its songs, but this is now $3.6 million per time for a new artist’s play. The company says that this is due to the “difficult adjustment” in time. The royalty figure does not include any costs from hosting the music and the advertising associated with this, which can amount to more than double the fees.
But if Spotify pays out all its streaming royalties per play, the company earns $25.6 million in royalties per year.
How much is Spotify paid per year to distribute its music through libraries?
Between October and February 2017, Spotify paid some $5.3 million per year to distribute its music from its library systems (though this is a different figure from the revenue it earns on the sales and downloads of its songs). For this, Spotify pays a set share of a royalty to each publisher it has contracted.
What are Spotify’s revenue calculations from the licensing contract it holds with publishers?
For this the company calculates sales of songs over a certain number of streams and then calculates a proportionate royalty payment to each publisher. For example, Spotify could have sold 100,000 songs in the previous month and it would earn $7.5 for each stream. However, one publisher is responsible for all 100,000, so the company pays a payment of $8.5.
Does it pay royalties from the content itself?
In the absence of any additional revenue through the streaming royalties it gets from publishing, no, but it does provide some of its revenues to libraries. It only receives a small share of sales made by artists, including on its own streaming service.
Does it get royalties for any of its own songs?
As mentioned above, all royalties (both digital and radio) it receives from the publishing process go to libraries instead of to artists.
Is Spotify open to licensing its content outside of libraries?
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