The Definitive Guide to Spotify Royalties

What's Good Peep's 

A while back I got an email from Jeff Price aka the owner of Audium {A Royalty collection agency} called The Definitive Guide to Spotify Royalties. 

In the email, Jeff explained that recently just before everything went on lockdown Spotify, Pandora, Google and Amazon were are arguing in Washington D.C. to decrease what songwriters are paid when their music is streamed on their music services. 

How To Get The Definitive Guide to Spotify Royalties PFD

Jeff was kind enough to provide us with a free ebook {NO EMAIL ADDRESS Required!!! } called the “Definitive Guide to Spotify Royalties” to decipher and understand how it all works, what they are lobbying to change and how it impacts the world’s songwriters. 

It's highly recommended that you should read it and educate yourself about what you can earn from the majority of these streaming retail websites. The ebook is very detailed and is over 40 pages and 65 diagrams.  

Feel free to download, share etc.   

Download The Definitive Guide to Spotify Royalties

{NO EMAIL ADDRESS Required!!! }

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" The complexity of Spotify royalties is, frankly, insane. So insane that it took me over a month and 40 pages (before including diagrams) to explain it all. No artist, label, songwriter, distributor or musician should be required to have a depth of knowledge of this complexity to understand a very simple question: “How much do I earn when my music streams on Spotify?” There should be a simple, easy to understand the answer.


THE TWO SEPARATE LICENSES AND THE TWO SEPARATE ROYALTIES GENERATED FOR EACH STREAM ON SPOTIFY 


"In order for Spotify and other services like it, to stream a recording, they need two distinct and separate licenses. Each of those licenses results in two distinct and separate royalties. (figure 1) The first license earns royalties for the Sound Recording. These royalties are called “Sound Recording” royalties. The second license earns royalties for the “Composition/Song” or “song” (the lyric and melody). These royalties are called “music publishing” or “publisher” royalties. Each license has its own royalty rate and rules to calculate the royalties earned. Payments for the royalties generated by the two separate licenses are funnelled through two distinct and different pipelines to get to their rightful earners."

"In addition, there are different types of Spotify services available to consumers. Each type has its own distinct and unique nuances that impact how to calculate royalties. For example, the Spotify “Premium” service costs $9.99 a month to listen to music, on-demand and ad-free, on any device (i.e. computer, tablet, smartphone). By contrast, Spotify’s “free” service is supported by advertisements and allows listeners to pay nothing to listen on-demand to music on any device (i.e. computer, tablet, smartphone)."
Spotify Jeff Price



THE RECORDING AND THE SOUND RECORDING LICENSE AND ROYALTY First the Sound Recording (Figure 2).


To help understand what a “Sound Recording” is, let’s use Whitney Houston‘s recording of the Composition/Song “I Will Always Love You.” Figure 1 Figure 2 4 Whitney Houston was hired by the record label Sony Records to record the Composition/Song “I Will Always Love You.” Spotify must get a license from Sony Records in order to stream this Sound Recording.


The license specifies the number of royalties that will be generated each time there is a qualifying stream of this Sound Recording on Spotify (Figure 3). First, the artist grants the right to stream their Sound Recording on Spotify to their distributor. Next, the distributor licenses the right to stream the artist’s/record label’s Sound Recording to Spotify. And again, just like with Sony Records, the license the DIY distributor has with Spotify specifies the number of royalties to be generated each time a qualifying stream of the Sound Recording occurs on Spotify. (Figure 4}
Jeff Price Music Royalties

HELPFUL VIDEO MUSIC DISTRIBUTION COMPANIES REVIEWED


A while back I broke down a number of music distribution companies and how to get your music on all the major streaming websites. Take a look at both the video and the article. Both go into great detail on the prices of each music distribution site and what they can offer you as a musician. 



See Full Post Here Download The Definitive Guide to Spotify Royalties

Jeff has been around the music industry for a long time. He has shared amazing FREE Webinars about how the music industry really works and provides musicians with education on how to set your music career for profitability. 

While I understand that this information isn't that easy to get your head around. The information in this PDF is quite complex and time and time again I find myself referring to the information provided to improve my knowledge on Spotify Royalties.  

I upset me when I see comments like this from musicians on Reddit

"I don't think anybody cares..."

"That's too bad. This is all stuff musicians need to know."

One of my favourite blogs about music marketing in relation to Spotify Royalties and Promotion is that of Heroic Academy. They have quite an extensive blog section dedicated to music marketing, music promotion and Spotify Royalties.

The author Budi Voogt has an amazing extract from this article about Spotify Playlists.

heroic.academy
Find out more here from the article source 
The Artist’s Guide To Spotify: Playlists, Royalties, Verified Profiles and more
"So you’re wondering: how do I get my music on those playlists?"

"Great question – with an unfortunately complex answer. 
You’ll either need a contact at Spotify or more realistically, a deal with a distributor or aggregator that does.
Ask them about how you can file for a ‘priority track request‘ or what is also called a ‘feature placement‘. This constitutes the distributor filling in a form with Spotify where they outline the projected sales figures for the release, as well as the artist’s historical sales figures and a summarized marketing plan.

Spotify then decides whether to place you or not. Success is largely based on the validity of your story; sales numbers, outstanding marketing campaign, proper label backing. It’s important to have both your label and distributor double down if you really want to make this happen.


Spotify Platlists

Record label playlists:

Release with one of the major labels or bigger independents that control their own playlists. You may even want to ask them to run a Spotify exclusively for 1-2 weeks leading up to the release if they think it will increase your odds of being included in one of Spotify’s primary playlists via a priority track request.

Independent playlists:

With Spotify removing independent playlists from the Browse section, tracking the best independent playlists can be a struggle.
Here are a few methods to find them:
  • Search for popular keywords (think Tomorrowland, EDM etc) and filter through the results, filtering out those with the most followers (anything with 5.000+ followers is significant).
  • Search Google for lists of the most popular playlists. Like this.
  • Or use websites that index Spotify playlists such as Playlists.me and SharedPlaylists.com.

From there, the process is straightforward: trace the account that created the playlist and employ your best internet researching skills to find a way to contact the playlist creator (usually via email, Twitter or Facebook Chat)"


While the information here about sourcing and connecting with Spotify Playlist owners is rock solid, outreach can be quite daunting for any up and coming musician. Outreach tasks like these are best left to professionals found on sites like Fiverr.com, Freelancer, Upwork and Onlinejob.ph. 


Most musicians are too attached to their music. It's very easy to get discouraged by the lack of responses or negative feedback. For this reason, I always suggest that you outsource your outreach campaigns for the best possible results. 


Understanding the Jeff Prices Guide To Spotify Royalties is solid information but long-winded and quite difficult to understand the first time around, I found a simplistic version by Henry Schoonmaker on the Songtrust blog 

Songtrust Logo


Find out more here from the article source

 

How Spotify Streams Turn Into Royalties


What Are Streaming Royalties?
"In general, anytime your song is played digitally, but not downloaded, it can be considered a music stream. Performance and mechanical royalties are both generated when your song streams on a digital streaming service like Spotify because a music stream is technically a public performance and a mechanical reproduction of your work -- allowing you to collect both types of royalties. 

The payout on a Spotify stream can vary based on what country and what kind of user (premium, free, family, student, etc.) is streaming the song. For example, someone streaming your song in the US on Spotify using the free version will generate fewer royalties than someone streaming in the US with a premium subscription.
Songtrust Music Royalties Explained

Depending on the service, you may earn different rates for performance and mechanical royalties per stream, and these rates are set by different entities. In the US, mechanical royalty rates are set by the Copyright Royalty Board (CRB). Performance royalty rates are primarily set through negotiations between Spotify and your domestic PRO (performing rights organizations such as ASCAP, BMI, and SESAC in the US). 

In order to capture these royalties, you’ll need to affiliate and properly register your song with the appropriate collection societies.".....



Jeff's Guide has also kicked up a storm on Twitter where ton's of EDUCATED Musicians understand the benefit and knowledge that Jeff has provided us for free. While I email my audience about music marketing every month I continue to refer my audience to Jeff's Spotify Royalties Guide. 

Check out what other musicians on Twitter had to say when Jeff released the PDF online for FREE!!!

https://twitter.com/JPriceOfMusic/status/1220897341869363200


I think it's also a good idea to learn how to music industry works. 

Ryan Waczek over at Indiemusicacademy.com has an excellent video and blog post goes over some of the same topics in relation to Spotify Royalties, Music Licensing, Types of Royalties and How The Money Flows. 

Indie Music Academy


How The Music Industry Works?


Click the link below to visit the article. 

How Are Artist Royalties Calculated?


"When talking about music royalties for performing artists, there is a range of acceptable amounts based on your clout as an artist. By clout, I mean how many fans you have, and your command over earning an income from those fans. If you are a new artist your clout will be low, but if you have a lot of buzz this can quickly increase your clout level to compare with other mid-level Artists. And then finally we have the superstars who are already commanding millions of streams and making lots of money for their managers and labels."


How Are Mechanical Royalties Calculated?


"The rate for Mechanical Royalties in the United States is set by the US government and is $0.091 per CD and digital download. That’s 9.1 cents to the composition owners every time the sound recording is pressed to a CD or downloaded from an online store. This rate can only change if the government legislates it higher or lower (hopefully higher) and is paid out by your Publisher, Publishing Administrator, Publishing Service such as Songtrust or CD Baby Pro."....


Click the link below to visit the article. 

Music Royalties Explained: The Ultimate Guide for 2020


These are curated extracts form high quality music marketing blogs. I specifically selected all of these extracts to help you learn more about Spotify Royalties from Jeff Price and How music Royalties work from the best online articles and authors. 

But Jeff is one of the best people in the music industry providing musicians with information about interactive streaming royalties. 

Hopefully, it will help answer your most common questions like “How much do I earn when my music streams on Spotify?”

 Feel free to download, share etc. 

And if you have any questions please feel free to Tweet them to at his current Twitter handle @TuneCoreJeff #SpotifyRoyalties and he will make video answers.

Download The Definitive Guide to Spotify Royalties

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Daniel Hartnett The Corporatethief Beats

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