Glossary
Streaming Royalties
Streaming royalties are the payments made to artists, songwriters, and rights holders each time a song is played on a digital streaming platform.
Definition
Streaming royalties come in two main categories: master royalties (paid to the owner of the recording — usually the artist or their label) and publishing royalties (paid to the songwriter and publisher). On platforms like Spotify, both types are paid but through different systems.
Royalty rates vary significantly by platform. Spotify pays approximately $0.003-0.005 per stream. Apple Music pays around $0.007-0.01. Tidal pays approximately $0.013. These are estimates — actual rates depend on the listener's country, subscription tier, and the platform's total payout pool.
Royalties are collected by distributors (for master rights) and performing rights organizations or CMOs like ASCAP, BMI, SESAC, PRS, and SOCAN (for publishing rights). Independent artists who both write and record their music can collect both streams of royalties.
Why it matters
At average streaming rates, an artist needs roughly 200,000-300,000 streams per month to earn minimum wage. This reality makes streaming revenue insufficient as a sole income source for most independent artists, which is why direct-to-fan revenue models — digital sales, merchandise, and email-driven campaigns — are critical.
How Lynkify uses this
Lynkify Analytics shows which platforms your fans prefer. While Lynkify does not collect royalties, knowing your platform breakdown helps you prioritize where to focus playlist pitching and where to direct promotion efforts for maximum royalty impact.
Frequently asked questions
- How do I collect streaming royalties as an independent artist?
- Master royalties are collected through your distributor (DistroKid, TuneCore, CD Baby). Publishing royalties require registration with a PRO (ASCAP, BMI, SESAC in the US) and potentially a publishing administrator like SongTrust or Songtrust for international collection.