The reality is simple: No service pays a fixed amount per stream because listeners don’t pay per stream either; they pay for access and can stream as much or little as they want. All streaming services pay essentially the same way: Around two-thirds of music revenue is paid back to rights holders based on their streamshare.
If every service pays out the same way, why is the average payout per stream different for each service?
The calculation is simple: Total payouts ÷ total streams = the “per-stream rate.”
So if users of a service don’t stream very much, the “per-stream rate” is higher. But the problem is that streaming more means people like the product and will continue to pay for music (and drive streams and money to a wider array of artists). If you stream very little, you are less likely to continue being a Premium subscriber, which means less money for artists.
Spotify offers the most engaging service where users stream more each month. The average Spotify listener streams 3 to 4 times more music per month than the average listener of other streaming services.
A service where fans listen only occasionally will generate fewer streams, a smaller royalty pool, and less total income for artists, no matter how the “rate” is framed. A service where fans listen daily, discover new music, and stay engaged is best at acquiring and retaining paying subscribers and growing the royalty pool for everyone.
The most active music listeners are on Spotify, and that engagement is what drives the economics of streaming.That’s why Spotify has the highest total payouts by far: $11B+ in 2025, up 10x from 2014. Everyone in the industry should want more streams per user as opposed to less.
Building a service that inspires listeners to stream lots and lots of music each month decreases the effective “per-stream rate” on Spotify but increases total payouts. We believe a larger paycheck is more important to artists than a higher “per-stream rate.”
You can dive deeper into the truth about streaming payouts here.