Spotify generally pays the royalties through distribution companies like 1710Media, or directly to the record label, if it has a direct licensing agreement with the platform (like Warner, Sony and Universal do). On the composition side or the copyright, Spotify pays royalties to songwriters through Performance Rights Organizations (PROs), or, once again, directly to huge publishing companies, that have direct relationships with the streaming service.
How much does Spotify pay per stream?
On average, Spotify pays the copyright holder(s) of the master recording $0.00318 per stream. However, as we’ve argued above, the per-stream payout will hugely depend on the type of streams the artist gets. Besides, the actual cash in the artist’s pocket will also depend on the contracts in place (between the artist, the label and the distributor).
How much does Spotify pay per 1000 streams?
Since the average stream pays $0.00318, 1000 streams on Spotify will earn the rights holder(s) of a musical work about $3.18.