In the digital age, music consumption has undergone a dramatic transformation. Gone are the days of physical CDs and vinyl records as the primary means of enjoying music. Instead, we find ourselves in an era dominated by music streaming platforms, which have not only revolutionized how we listen to music but also significantly impacted the music industry itself. In this comprehensive exploration, we will journey through the diverse landscape of music streaming, delving into the major platforms, their ownership structures, the economics for artists, annual streaming statistics, global platform rankings, prominent artists on each platform, and subscription costs for users.
Introduction
The transition from physical music formats to digital streaming has democratized access to music, allowing listeners to explore an extensive catalog of songs with just a few clicks. This shift has also brought new challenges and opportunities for artists and record labels. As streaming platforms have gained prominence, understanding their dynamics, ownership, and financial implications has become vital for all stakeholders involved in the music industry.
Major Music Streaming Platforms
1. Spotify
Ownership: Spotify, founded in 2006 by Daniel Ek and Martin Lorentzon, is a Swedish audio streaming platform that went public on the New York Stock Exchange in 2018. It operates under the parent company Spotify Technology S.A.
Artist Earnings: The revenue an artist earns per stream on Spotify varies based on several factors, including the user’s subscription tier (Free, Premium, or Premium Family), the artist’s contract with their record label, and the country in which the stream occurs. On average, artists can expect to earn between $0.003 and $0.005 per stream. This means an artist would need millions of streams to generate substantial income.
Annual Streams: Spotify, with its massive user base, racks up billions of streams each year. In 2020, Spotify reported over 625 billion streams across the platform.
Global Ranking: Spotify is the world’s largest music streaming platform, boasting over 345 million active users and 155 million premium subscribers as of December 2020.
Prominent Artists: Some of the biggest artists on Spotify include Drake, Ed Sheeran, Ariana Grande, and Bad Bunny. These artists have billions of streams and millions of monthly listeners.
User Costs: Spotify offers several subscription tiers, including Spotify Free (ad-supported with limited features), Spotify Premium (ad-free, offline listening, and enhanced sound quality), and Spotify Premium Family (multiple accounts under one subscription). Prices vary by region, but Premium typically costs around $9.99 per month, with discounts for students and family plans.
2. Apple Music
Ownership: Apple Music is a product of Apple Inc., one of the world’s largest technology companies. It was launched in 2015 as a direct competitor to existing streaming platforms.
Artist Earnings: Similar to Spotify, artist earnings on Apple Music depend on various factors, including the user’s subscription type and the country of the listener. On average, artists can earn between $0.006 and $0.008 per stream.
Annual Streams: Apple Music reported over 72 billion streams in 2020, reflecting its substantial user base.
Global Ranking: While Apple Music is a significant player in the music streaming industry, it lags behind Spotify in terms of total users. As of 2020, Apple Music had over 72 million subscribers worldwide.
Prominent Artists: Apple Music features a wide array of prominent artists, including Taylor Swift, Billie Eilish, Post Malone, and The Weeknd.
User Costs: Apple Music offers individual subscriptions for $9.99 per month, family plans for $14.99 per month, and student discounts. Apple also offers a bundled package called Apple One, which includes various services like Apple Music, Apple TV+, Apple Arcade, and more at a reduced price.
3. Amazon Music
Ownership: Amazon Music is part of Amazon.com Inc., one of the world’s largest e-commerce and technology companies. Amazon Music encompasses several streaming tiers, including Amazon Music Unlimited.
Artist Earnings: Like other streaming platforms, artist earnings on Amazon Music vary. For Amazon Music Unlimited, the payout per stream is approximately $0.008 to $0.012, depending on factors such as the user’s location.
Annual Streams: While Amazon does not regularly disclose its annual streaming figures, it is a significant player in the music streaming industry.
Global Ranking: Amazon Music competes with Spotify and Apple Music and is considered one of the major streaming platforms. Its user base spans millions of subscribers.
Prominent Artists: Amazon Music features an extensive catalog of artists across genres, making it home to musicians like Taylor Swift, The Rolling Stones, and Billie Eilish.
User Costs: Amazon Music offers several plans, including Amazon Music Unlimited (individual and family plans) and Amazon Prime Music (included with an Amazon Prime subscription). Prices range from $7.99 to $14.99 per month for Amazon Music Unlimited, while Amazon Prime Music is included with an Amazon Prime membership.
4. YouTube Music
Ownership: YouTube Music is owned by Google, a subsidiary of Alphabet Inc. It is a music streaming platform closely integrated with YouTube, the world’s largest video-sharing platform.
Artist Earnings: Earnings for artists on YouTube Music are influenced by various factors, including ad revenue, subscriptions, and video views. The payout can range widely, with some artists earning significant income from YouTube.
Annual Streams: YouTube Music benefits from the immense user base of YouTube, with billions of music-related video views every day. Specific streaming figures for YouTube Music are not always disclosed separately.
Global Ranking: YouTube Music is one of the prominent music streaming platforms and, in part, leverages the popularity of its parent platform, YouTube.
Prominent Artists: YouTube Music hosts videos and songs from countless artists worldwide. Prominent figures like Justin Bieber, BTS, and Blackpink have achieved significant success on the platform.
User Costs: YouTube Music offers both free and premium subscription options. The premium subscription, known as YouTube Music Premium, is priced at $9.99 per month and provides ad-free listening, offline downloads, and background play.
5. Tidal
Ownership: Tidal is owned by a group of artists and investors, including Jay-Z. It differentiates itself by emphasizing high-fidelity audio quality and artist ownership.
Artist Earnings: Tidal is often lauded for its artist-friendly approach. It claims to pay the highest percentage of royalties to artists and songwriters. The exact per-stream payout varies but can be higher than on other platforms, potentially exceeding $0.01 per stream.
Annual Streams: Tidal reported over 4 billion streams in the first quarter of 2021, although it has a smaller user base compared to giants like Spotify and Apple Music.
Global Ranking: While Tidal is not among the largest streaming platforms in terms of subscribers, it has carved out a niche with its emphasis on audio quality and artist equity.
Prominent Artists: Tidal has partnerships with many high-profile artists, including Beyoncé, Kanye West, and Rihanna. These artists have released exclusive content on the platform.
User Costs: Tidal offers various subscription tiers, including Premium (standard sound quality) and HiFi (lossless, high-fidelity audio). Prices range from $9.99 to $19.99 per month.
6. Deezer
Ownership: Deezer is a publicly traded company based in France, offering a wide range of music streaming services.
Artist Earnings: Artist earnings on Deezer are influenced by factors like user location and subscription type. On average, artists can expect to earn around $0.005 to $0.007 per stream.
Annual Streams: While Deezer has a significant global presence, specific annual streaming figures are not always disclosed.
Global Ranking: Deezer is a notable player in the music streaming industry, with millions of users worldwide.
Prominent Artists: Deezer features a diverse selection of artists and playlists, catering to various music tastes. Prominent artists across genres can be found on the platform.
User Costs: Deezer offers several subscription tiers, including Premium, Family, Student, and HiFi. Prices vary by region but typically range from $9.99 to $19.99 per month.
Artist Earnings and Streaming Platforms
To understand how much artists make per stream on different platforms, we must consider several key factors that influence these earnings:
- Subscription Tiers: Most streaming platforms offer multiple subscription tiers, such as free, ad-supported options and premium, ad-free subscriptions. Artists generally earn more from premium subscribers than free users.
- Geographical Location: Streaming payouts can vary significantly by country due to licensing agreements and regional economic factors.
- Contracts: Artist contracts with record labels and distribution agreements play a crucial role in determining how much of the streaming revenue an artist receives. In many cases, record labels take a substantial share.
- Total Streams: The total number of streams an artist accumulates directly impacts their earnings. More streams generally mean higher revenue.
- Platform-Specific Agreements: Some streaming platforms offer exclusive deals or bonuses to certain artists or record labels, affecting their earnings.
- Royalty Rates: Each platform negotiates royalty rates with record labels and music publishers, and these rates can vary.
It’s essential to note that while streaming platforms have transformed music consumption, they have also been a source of controversy and debate within the music industry. Some artists argue that the revenue generated by streaming is insufficient, particularly for independent musicians who lack the support of major record labels.
Annual Streaming Statistics
To provide an overview of the massive scale of music streaming, here are some key annual streaming statistics for the year 2020:
- Total Streams: In 2020, the global music streaming market saw over 2.15 trillion on-demand streams, according to Nielsen Music’s year-end report.
- Leading Genre: Pop music was the most-streamed genre in 2020, followed by hip-hop/rap and rock.
- Top Streaming Day: On June 11, 2020, streaming hit a peak, with over 1.8 billion streams in the United States, largely attributed to the Black Lives Matter movement and protests.
- Platform Growth: Several streaming platforms experienced substantial growth in 2020, with Spotify reporting 345 million monthly active users and Apple Music surpassing 72 million subscribers.
- Global Impact: Latin music continued to rise globally, with artists like Bad Bunny and J Balvin achieving international success.
Global Platform Rankings
While several music streaming platforms cater to different audiences and preferences, the following platforms consistently rank among the largest in the world:
- Spotify: As the industry leader, Spotify boasts the largest user base, with over 345 million active users and 155 million premium subscribers as of December 2020.
- Apple Music: Apple Music is a strong contender with over 72 million subscribers worldwide as of 2020.
- Amazon Music: Amazon Music is a significant player, benefiting from its vast customer base, although specific subscriber numbers may not be disclosed.
- YouTube Music: Leveraging the popularity of YouTube, YouTube Music enjoys a substantial global presence.
- Tidal: While not as large in terms of subscribers, Tidal has carved out a niche with its focus on high-fidelity audio quality and artist equity.
- Deezer: Deezer has a notable global presence, serving millions of users worldwide.
Prominent Artists on Streaming Platforms
Each streaming platform hosts a diverse range of artists spanning various genres. Here are some prominent artists on each major platform:
- Spotify: Drake, Ed Sheeran, Ariana Grande, Bad Bunny, and Taylor Swift are among the top artists with billions of streams and millions of monthly listeners.
- Apple Music: Taylor Swift, Billie Eilish, Post Malone, and The Weeknd are some of the platform’s prominent artists.
- Amazon Music: Amazon Music features an extensive catalog of artists, including Taylor Swift, The Rolling Stones, and Billie Eilish.
- YouTube Music: YouTube Music hosts artists like Justin Bieber, BTS, and Blackpink, who have achieved significant success on the platform.
- Tidal: Tidal has partnerships with artists like Beyoncé, Kanye West, and Rihanna, who have released exclusive content on the platform.
- Deezer: Deezer offers a diverse selection of artists catering to various music tastes.
User Costs
The cost for users to access music streaming platforms can vary based on several factors, including the type of subscription and regional pricing. Here are the typical subscription costs for major platforms:
- Spotify: Spotify offers several subscription tiers, including Spotify Free (ad-supported with limited features), Spotify Premium ($9.99 per month), and Spotify Premium Family (multiple accounts under one subscription).
- Apple Music: Apple Music offers individual subscriptions for $9.99 per month, family plans for $14.99 per month, and student discounts. Apple also offers a bundled package called Apple One, which includes various services like Apple Music, Apple TV+, Apple Arcade, and more at a reduced price.
- Amazon Music: Amazon Music offers individual plans for $7.99 per month (Amazon Prime members) or $9.99 per month (non-Prime members). Family plans are available for $14.99 per month.
- YouTube Music: YouTube Music offers a premium subscription called YouTube Music Premium, priced at $9.99 per month, providing ad-free listening, offline downloads, and background play.
- Tidal: Tidal offers various subscription tiers, including Premium (standard sound quality) and HiFi (lossless, high-fidelity audio). Prices range from $9.99 to $19.99 per month.
- Deezer: Deezer offers several subscription tiers, including Premium, Family, Student, and HiFi. Prices typically range from $9.99 to $19.99 per month.
Please note that these prices are subject to regional variations and promotional offers that platforms may periodically introduce.
Conclusion
The music streaming landscape is a dynamic and ever-evolving ecosystem that has forever changed how we consume and interact with music. While major platforms like Spotify, Apple Music, Amazon Music, YouTube Music, Tidal, and Deezer dominate the market, numerous other streaming services cater to diverse audiences and preferences.
Understanding the nuances of artist earnings, annual streaming statistics, global platform rankings, prominent artists, and user costs is crucial for anyone interested in the music industry, whether as an artist, listener, or industry professional. As the industry continues to evolve, it is essential to keep abreast of new developments and innovations that shape the future of music streaming.