ROYALTY TYPESYour music generates two kinds of royalties on Spotify
Recording royaltiesThis is the money paid to recorded music rightsholders, which is distributed to artists via the licensor they selected to deliver their music — typically a record label or distributor.
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Publishing royaltiesThe money paid to the songwriter(s) or owner(s) of a composition, covering both performance and mechanical rights. Payments are issued to publishers, performance rights organizations (PROs), and mechanical agencies based on the territory of usage.
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ROYALTY CALCULATIONS
Royalties are calculated on streamshareSpotify, like every major streaming service, pays royalties based on an artist’s or songwriter’s share of overall streams across the platform — not based on a fixed per-stream rate.
  • Roughly two-thirds of Spotify’s music revenue (from Premium subscription fees and advertising) is allocated to recording and publishing royalties, with around four-fifths going to recording and one-fifth to publishing.
  • We pay rightsholders based on streamshare — their share of total streams in a given month. E.g., if an artist accounts for 1% of all streams in a particular country, their selected rightsholder(s) receive 1% of the recording royalties we pay there.
  • Rightsholders then pay artists and songwriters according to their individual agreements.
    • How the money flowsHow royalties flow from Spotify to youWhen your music is streamed on Spotify — whether on Premium or Free — royalties are calculated and paid to rightsholders. From there, the money moves through labels, distributors, publishers, and collective management organizations (CMOs), such as PROs and mechanical agencies, before it reaches artists and songwriters.

    This chart shows the typical paths for both recording and publishing royalties.

    Artists and songwriters may pay commissions or service fees from their income to managers, collaborators, or team members. These payments are separate from royalty payments.
    Loud & Clear - our annual music economics reportSee how artists at every level generated royalties on Spotify in 2024.
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    Common myths about Spotify royalties

    Spotify pays royalties to artists’ and songwriters’ selected rightsholders, who then pay artists and songwriters based on their individual agreements.

    Fans don’t pay per song, and no major streaming service pays a fixed rate per stream. Royalties are based on streamshare.

    Spotify pays out roughly two-thirds of its revenue to recording and publishing rightsholders on behalf of the artists and songwriters they represent.

    GETTING PAID
    Register your musicTo ensure you’re receiving the publishing royalties owed to you, it’s essential to register your music.
  • Register your songs with a PRO, mechanical agency, or your publisher so song usage can be tracked and your songwriting royalties paid.
  • Make sure song titles, writer names, and splits are agreed upon and entered correctly. Typos or missing details can delay or block royalty payments.
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    GETTING PAID
    How to stay in control of your payoutsA few simple steps can help you avoid missed payments and give you a clearer view of how your royalties flow.
  • Understand your agreement type with your rightsholders, including the percentage each takes, any administrative costs, and the benefits they provide.
  • Take time to review your royalty statements. They show you exactly where your income comes from and what period it relates to.
  • Consider whether you have taken an advance and your current recoupment status.
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