Sam Duboff

Some of them you're talking about, but also part of it's like, let's just bring more transparency to the industry, right? Yeah. How much is each streaming service paying out? What are traditional label deals? How much are artists taking home? I think the more we normalize talking about those things, company sharing those things, the better.

Some of them you're talking about, but also part of it's like, let's just bring more transparency to the industry, right? Yeah. How much is each streaming service paying out? What are traditional label deals? How much are artists taking home? I think the more we normalize talking about those things, company sharing those things, the better.

So Spotify pays out the same as every other major streaming service, which is not a fixed amount per stream. If you think about it as a listener, you're paying $11, $12 a month. In the US, you pay the same amount no matter how much you stream. If we paid out a fixed amount per stream, there'd have to be a limit to how many songs you can stream, something like that.

So Spotify pays out the same as every other major streaming service, which is not a fixed amount per stream. If you think about it as a listener, you're paying $11, $12 a month. In the US, you pay the same amount no matter how much you stream. If we paid out a fixed amount per stream, there'd have to be a limit to how many songs you can stream, something like that.

The way every streaming service pays out is called stream share, which is complicated, but we can simplify it a bit, which is if you get 1% of the streams on the platform, you get 1% of the royalty pool. It's on a percentage of consumption basis.

The way every streaming service pays out is called stream share, which is complicated, but we can simplify it a bit, which is if you get 1% of the streams on the platform, you get 1% of the royalty pool. It's on a percentage of consumption basis.

Exactly. That $10 billion a year, you're getting 1% of it.

Exactly. That $10 billion a year, you're getting 1% of it.

So yeah, one of the data points we shared in Loud and Clear this year is last year in 2024 for the first time, if you got one in 1 million streams on Spotify, out of all 1 million streams, you just need to get one, you generate more than $10,000, which is pretty solid. 10 years ago for one in a million, you'd get 1,000. It's 10x now.

So yeah, one of the data points we shared in Loud and Clear this year is last year in 2024 for the first time, if you got one in 1 million streams on Spotify, out of all 1 million streams, you just need to get one, you generate more than $10,000, which is pretty solid. 10 years ago for one in a million, you'd get 1,000. It's 10x now.

Yeah, yeah. I think like a lot of people, because of the way that video services pay out, are used to some fixed amount per impression. And streaming doesn't work that way at all. Yeah, one of the most confusing parts of streaming is if you're an artist, all you're receiving is... your paycheck and you see the number of streams. So it's easy to do that math.

Yeah, yeah. I think like a lot of people, because of the way that video services pay out, are used to some fixed amount per impression. And streaming doesn't work that way at all. Yeah, one of the most confusing parts of streaming is if you're an artist, all you're receiving is... your paycheck and you see the number of streams. So it's easy to do that math.

You feel like it should be related, but often it's kind of inversely related to what you want a streaming service to do. So I'll explain what I mean. Imagine there is a streaming service where it pays out a dollar per stream. an artist would be like, oh my God, that sounds amazing. That'd be incredible. So then you kind of think through what is a streaming service priced?

You feel like it should be related, but often it's kind of inversely related to what you want a streaming service to do. So I'll explain what I mean. Imagine there is a streaming service where it pays out a dollar per stream. an artist would be like, oh my God, that sounds amazing. That'd be incredible. So then you kind of think through what is a streaming service priced?

Since all streaming services have the same music, you know, tends to be priced pretty similar, $11, $12. It's hard to price much more than that. If a service is paying out

Since all streaming services have the same music, you know, tends to be priced pretty similar, $11, $12. It's hard to price much more than that. If a service is paying out

a dollar per stream that means the average subscriber is only listening to like 10 songs a month right you're okay you're paying yeah twelve dollars let's say ten dollars nine dollars is going to rights holders if that service is paying that much per stream on average it means that subscriber is only listening to to 10 songs so you know what i think i think i get what you're saying what would be true about that streaming service if you had a streaming service where people paid 12 a month but they only listened to 10 songs a month

a dollar per stream that means the average subscriber is only listening to like 10 songs a month right you're okay you're paying yeah twelve dollars let's say ten dollars nine dollars is going to rights holders if that service is paying that much per stream on average it means that subscriber is only listening to to 10 songs so you know what i think i think i get what you're saying what would be true about that streaming service if you had a streaming service where people paid 12 a month but they only listened to 10 songs a month

You know, you'd look at it, you'd be like, oh, a dollar per stream, but it's probably not a very engaging streaming service. It's not inspiring people to listen to a lot of music. Subscribers probably aren't going to retain. If you're only listening to 10 songs a month, you're probably not going to keep paying $12 a month because you're not getting that much value from it.

You know, you'd look at it, you'd be like, oh, a dollar per stream, but it's probably not a very engaging streaming service. It's not inspiring people to listen to a lot of music. Subscribers probably aren't going to retain. If you're only listening to 10 songs a month, you're probably not going to keep paying $12 a month because you're not getting that much value from it.