Can an emerging artist or creator make money with music and podcasts? Here’s how much Spotify pays per listen and how to earn money with the platform.
For those who independently create music or podcasts, streaming platforms today represent one of the main opportunities to distribute their work and generate income. Services like Spotify, Amazon Music, Apple Music, YouTube Music, and Tidal have radically transformed the way audio content of all kinds is consumed and distributed, offering emerging artists an accessible platform to reach a global audience.
Of all the platforms, Spotify is undoubtedly the most widespread and used worldwide. This makes it particularly attractive for those who want to monetize their self-produced music and more. However, it’s important to clarify that streaming revenues are highly dependent on the overall number of streams; just like on YouTube, revenues are proportional to views and user engagement.
In recent years, the perception of music as a "free good" has slowly evolved. Not long has passed since the era of pirated downloads and unauthorized sharing, but today legal, subscription-based access to music has become an accepted and widespread standard. Spotify has established itself in this fluid and somewhat chaotic landscape, offering a sustainable model for both big names in the music industry and independent artists.
However, it’s useful to know that the revenue generated per individual stream is relatively low, and that to achieve significant earnings, a very high number of streams is required. According to data published by organizations such as the IFPI (International Federation of the Phonographic Industry) and market analyses updated to 2024, streaming currently accounts for approximately 65% of global music industry revenues. Yet, only a small percentage of this revenue ends up in the hands of independent artists, especially those not supported by labels or digital distribution agencies.
So, how much does Spotify pay artists and creators per stream? How much and how can you earn with the world’s most popular music streaming platform? Here’s everything you need to know.
Can you earn with Spotify?
The answer is yes. A small artist, a creator, an emerging artist, or anyone who makes music for fun has the opportunity to earn money and save a small nest egg if they use streaming platforms to promote their music or podcast. Spotify is a streaming platform that pays its artists based on how many streams they get (not always).
Releasing as a record label allows for a better ranking, but this doesn’t directly translate into better earnings. However, you can achieve better results by promoting your music.
However, it’s impossible to say that with Spotify, especially if you’re a small artist, you can earn enough to survive. Spotify can be added to other forms of income with music, but it certainly can’t be the only source of income. Even big artists don’t earn much from streaming their music on Spotify, considering, as we’ll see, how much the platform actually pays.
How Much Will Spotify Pay in 2025 Per Stream
In 2025, Spotify continues to be one of the leading music streaming platforms globally, with over 250 million premium subscribers and a total user base of 678 million. However, artist compensation for each stream varies based on several factors.
According to available information, Spotify does not adopt a flat rate per stream. Artist compensation depends on several factors, including:
- Listener’s account type: Streams from premium users generate higher revenue than those from users with a free, ad-supported account;
- Listener’s country of origin: Rates may vary by local market;
- contractual agreements: Independent artists who distribute their music directly may receive a different percentage than those tied to record labels (who then pay their artists).
On average, Spotify is estimated to pay artists between $0.03 and $0.05 per stream. However, it’s important to note that these figures are approximate and can vary significantly based on the factors mentioned above.
How much do you earn with Spotify? Real Earnings and Some Concrete Examples
To understand real earnings on Spotify, it’s helpful to consider some practical examples based on average payout estimates per stream (always in dollars):
- 1,000 streams: approximately $3 - $5
- 10,000 streams: approximately $30 - $50
- 100,000 streams: approximately $300 - $500
- 1,000,000 streams: approximately $3,000 - $5,000
Please note that these figures are purely indicative and may vary from person to person.
It’s important to note that artists do not receive the full amount generated by streams. Revenue is split among several parties, including:
- record labels: If the artist is signed, a significant portion of the earnings may be retained by the label;
- digital distributors: For independent artists, distributors may retain a percentage of the revenue;
- other rights holders: such as songwriters, composers, and music publishers.
Therefore, to earn significant revenue from Spotify, you need to achieve a high number of streams and carefully manage contractual agreements.
How to Make Money on Spotify: Strategies for Creators and Artists
To maximize earnings on Spotify, artists can adopt several strategies.
- Effective Distribution: Use reliable digital distribution platforms that offer transparent terms and competitive commissions.
- Artist Profile Optimization: Keep your profile updated with bios, images, and social media links to engage listeners.
- Playlisting: Try to get your tracks featured on popular playlists, both editorial and user-generated, to increase visibility.
- Cross-platform promotion: Use social media, YouTube videos, and other platforms to drive traffic to Spotify.
- Collaborations: Work with other artists to reach new audiences and increase streams.
- Data analysis: Monitor listening statistics to better understand your audience and adjust marketing strategies.
- Alternative monetization: Consider other revenue streams, such as live concerts, merchandise, and music licensing, to supplement streaming revenue.
By implementing these strategies, artists can increase their presence on Spotify and improve their earnings potential.
How much does it cost to advertise on Spotify to get more streams
Spotify offers several advertising options for promoting music. Spotify Ad Studio, a self-service platform, allows artists to create and manage audio and video advertising campaigns.
To start an advertising campaign on Spotify Ad Studio, a minimum budget of $250 is required. Cost per thousand impressions (CPM) costs vary, but on average, they are around $7.92 for audio ads and $8.07 for video ads.
It’s important to carefully plan advertising campaigns, clearly defining objectives and target audiences, to maximize your return on investment (and avoid wasting money).
Original article published on Money.it Italy. Original title: Quanto paga Spotify? Ecco quanto si guadagna per ogni ascolto
