How Much Are Musicians Making From Online Streaming Services?

There are myriads of businesses launched online. If you are looking for crazy themed Christmas sweaters, you can visit UglyChristmasSweater.com and buy yourself a strangely designed ugly Christmas sweater. If you are looking to buy some gadgets, you can visit the website of corporate giants like Apple or Samsung. The internet is a pool teeming with various businesses. Musicians also have their own niche in the world of internet. If you visit websites such as youtube, spotify and iTunes, you can download and listen to your favorite artists.

How do musicians earn online? Streaming online services like Spotify caused a stir in the music industry. There was a debate on how the artists would be earning from these websites. This year, the debate is continuing to heat up.

In 2010, a data journalist named David McCandless published a graphic showing how much musicians are earning online. The data consolidated by McCandless came from statistics from different digital companies like iTunes, Amazon, Spotify, Apple, Rhapsody, Tidal and Youtube. The infographic also showed how much an artist can earn for a single stream and how many streams it will need to achieve the minimum wage of $1,260.

Some important notes though: the numbers pooled in by McCandless apply only to performing musicians and it excludes royalties for the song composition. It also includes how much the artist was paid when he signed into the label. Some musicians have good deals, other have fair deals and others less than fair.

Factoring in those mentioned above, the figures provided in the infographic may not match the figures declared by the streaming online services. A concrete example to this will be the online streaming services of Spotify. Spotify announces that its average payout to artists for every single stream is in the range $.006 and $.0084. However, the website created by McCandless suggests that the payment for artists is in the amount $.001128.

Another thing to consider is the per play figure for the streaming websites since this can be misleading. This figure depends on how many users there are currently on the online service. Beats may be paying more than Spotify because it relatively has fewer users.