In the world of digital music, understanding how royalties are calculated by various streaming platforms is crucial for artists. WAVBEE empowers artists by providing transparent royalty insights and ensuring maximum payouts. Here’s a breakdown of how royalties work on popular platforms, along with WAVBEE-specific data on artist earnings.
1. Spotify: Pro-Rata System
How It Works:
Spotify uses a pro-rata system to distribute royalties from a revenue pool generated by subscriptions and advertisements. Your earnings depend on your share of total streams during a given period.
Key Factors Affecting Earnings:
- Country: Payouts vary depending on subscription fees and ad revenue from specific regions.
- Subscription Type: Streams from premium users yield higher royalties compared to ad-supported free users.
Average Earnings (via WAVBEE):
- India: AUD 1.00 per 1,000 streams
- US: AUD 7.10 per 1,000 streams
- EU (Germany, France, Italy): AUD 5.50 to AUD 7.00 per 1,000 streams
2. Apple Music: Subscription-Based Payouts
How It Works:
Apple Music distributes revenue from its paid subscriber base, leading to higher and more consistent payouts. There’s no free ad-supported tier, simplifying the calculation process.
Average Payout Per Stream:
- Approximately AUD 0.006 to AUD 0.01 per stream.
Artist Earnings (via WAVBEE):
- India: AUD 2.10 per 1,000 streams
- US: AUD 7.90 per 1,000 streams
- EU (Germany, France, Italy): AUD 10.00 to AUD 14.00 per 1,000 streams
3. YouTube: Ad Revenue and Premium Subscriptions
How It Works:
Artists earn through ad revenue generated by video views or through YouTube Premium subscriptions.
Ways to Maximize YouTube Royalties:
- Content ID: Monetize user-generated content using your music.
- Watch Time Optimization: Create engaging videos to increase watch time.
Artist Earnings (via WAVBEE):
- India: AUD 0.40 per 1,000 views
- US: AUD 8.10 per 1,000 views
- EU: AUD 5.80 to AUD 6.50 per 1,000 views
4. Tidal: High Payout Rates
How It Works:
Tidal is renowned for its artist-centric initiatives and high-fidelity streaming. It offers some of the highest royalties in the industry.
Average Payout Per Stream:
- AUD 0.012 to AUD 0.015 per stream.
Artist Earnings (via WAVBEE):
- India: AUD 6.50 per 1,000 streams
- US: AUD 12.80 per 1,000 streams
- EU: AUD 10.50 to AUD 12.00 per 1,000 streams
5. Instagram and Facebook: Social Media Streaming
How It Works:
Music streamed via Instagram and Facebook stories or reels earns royalties through platform-specific licensing agreements.
Artist Earnings (via WAVBEE):
- India: AUD 0.50 per 1,000 plays
- US: AUD 2.00 per 1,000 plays
- EU: AUD 1.80 to AUD 2.20 per 1,000 plays
6. TikTok: Short-Form Content
How It Works:
TikTok pays royalties based on user engagement and the popularity of the audio used in videos.
Artist Earnings (via WAVBEE):
- India: AUD 0.30 per 1,000 plays
- US: AUD 1.20 per 1,000 plays
- EU: AUD 0.90 to AUD 1.30 per 1,000 plays
Fraudulent Streams and Artificial Plays
Platforms like Spotify, Apple Music, and YouTube monitor streams for fraudulent activity. Streams generated through artificial means (e.g., bots) are penalized, and royalties may be withheld. Additionally, repeated streams by the same listener yield diminishing returns.
WAVBEE Artist Royalties
WAVBEE offers artists up to 100% of their royalties, depending on the plan they choose. On average, WAVBEE artists earn the following (per 1,000 streams or views):
| Platform | India (AUD) | US (AUD) | EU (AUD) |
|---|---|---|---|
| Spotify | 1.00 | 7.10 | 5.50 – 7.00 |
| Apple Music | 2.10 | 7.90 | 10.00 – 14.00 |
| YouTube Music | 0.40 | 8.10 | 5.80 – 6.50 |
| YouTube Content ID | 0.12 | 5.00 | 4.20 – 5.50 |
| Instagram/Facebook | 0.50 | 2.00 | 1.80 – 2.20 |
| Tidal | 6.50 | 12.80 | 10.50 – 12.00 |
| TikTok | 0.30 | 1.20 | 0.90 – 1.30 |
| VEVO | 0.72 | 9.20 | 3.80 – 4.90 |
The royalty numbers presented in this blog are based on WAVBEE’s royalty data from the past six months. However, it’s important to note that these figures are subject to change as streaming platforms continually make adjustments to their payout models. At WAVBEE, we strive to be as transparent as possible, providing our artists with accurate royalty insights and detailed analytics to help them make informed decisions about their music careers.
Take control of your music’s potential and start earning royalties with WAVBEE. Join a platform that prioritizes transparency, empowers artists, and offers tools to amplify your reach. Ready to get started?
Have questions about royalties? Contact us at help@wavbee.com! Let’s help you maximize your earnings and reach a global audience.
