Music can earn you good revenue from making shows, selling albums, and even releasing them on Apple Music. But how does Apple Music pay its musicians? To help you estimate how much you can earn, read this Apple Music pay-per-stream full guide.
To be successful in music and make good money from Music streaming service providers, you must understand royalties. There are several streaming service providers, but the best are Amazon and Spotify. If you are an upcoming musician and would love to understand more about streaming royalties, this Apple Music Pay per Stream full guide is for you.
Factors Affecting Apple Music Pay Per Stream.
According to Apple Music, they have a Pay per Stream policy of $0.01, but several factors affect it. These factors are:
The subscription plan of your listeners.
Apple Music allows users to enjoy a one-month free trial of unlimited music streaming. You are then expected to pay a monthly subscription plan of $9.99 to continue enjoying the streaming service. If you have many listeners with a subscription plan streaming your Music, Apple will pay you a higher pay-per-stream average.
Country your listeners stream music from.
How does the country your listeners stream your Apple Music from affect your pay per stream? You should know that each country has a different pay-per-stream for Apple Music. You will enjoy higher pay if most of your listeners come from a country that pays more for Apple streams.
When releasing your Music on Apple Music, you can use Ditto. Your individual Ditto dashboard lets you know your music listeners' location.
Do you have a music distributor representing you or a direct deal with Apple Music? If you deal with Apple Music, you will receive higher royalties than they usually pay.
But, if you have a music distributor or dealer representing you, your royalties will be lower. Why? Because your distributor will also receive a share from your royalties.
Duration of your song.
Apple Music pays more royalties for songs with more than five minutes. Longer songs take more effort, so the artist deserves a better reward.
Ways to Maximize Your Earnings on Apple Music Streams.
Generally, the more streams your music has on Apple Music, the higher your royalties will be. You can maximize your earnings on Apple music streams in two main ways.
- If you are starting on Apple Music, you should try to get verified after uploading your music on the platform. A verified account will give you the advantage of enjoying unlimited access to features that will help you track the progress of your music, such as your listeners’ insights.
- Make sure you make good use of the promotional tools Apple Music avails to you. Promotional tools help you create track previews, design music icons, and design social links for your music, helping you push your music to your audience.
How much does Apple pay per stream?
According to Apple Music, they pay $0.01 for each stream, but, practically, its average is $0.007 – $0.01. When you analyze this Pay, Apple is the 4th highest-paying streaming service, owning at least 24.7% of the market share in streaming services. Moreover, Apple Music has over 88 million subscribers, increasing daily.
How does Apple Music Calculate How Much to pay its musicians?
Although Apple Music states that it pays $0.01 for streaming, this is not the actual figure but depends on what it pays monthly to its shareholders. Here is how streaming service platforms pay their artists.
- The service provider calculates its revenue from advertising and subscriptions.
- It then deducts its share; Apple Music takes 52%.
- Lastly, depending on the streams, it pays the music distributor or the label a percentage.
The Streaming Service with the Highest Market Share, Revenue, and Subscribers.
Spotify has the highest market share of 48.3% and over 180 million subscribers. Apple is the second largest, with a market share of 24.7% and over 88 million subscribers. However, although Apple Music has fewer paying subscribers, it has acquired a market share in the US, surpassing even that of paying subscribers on Spotify.
Tidal has a market share of 0.98% and 5Million subscribers making it the lowest streaming service. But it has a very high Pay per stream due to the few subscribers.
Why do Musicians Earn More on Spotify than on Apple Music?
Apple Music may seem to pay its musicians more money, but in reality, Spotify is a better streaming service for its musicians. Here is why:
- Spotify has more users than Apple Music.
- Spotify uses great suggestion algorithms that help to recommend music to many listeners.
- The low number of subscribers makes Apple Music have a high pay-per-stream. Consequently, the average PPS increases due to the low number of streams.
- Unlike Apple Music, Spotify has more paid subscribers and accounts, which creates more advertising revenue for them: more revenue means higher pay for its musicians.
Is Spotify Better than Apple Music?
From our discussion above, is Spotify better than Apple Music? It's hard to say yes or no because each service provider has some advantages.
Apple Music may pay its musicians better for each stream but has fewer subscribers. On the other hand, Spotify has more subscribers, which increases your chance of getting a playlist on the “official playlists.”
If you are an upcoming musician, it becomes easier for you to grow your audience base. Using both platforms to release your music is wise as it raises your chance of making more money.
Devices Supporting Apple Music.
These are the devices you can use to stream Apple Music.
- Amazon Echo.
- Google Home.
- Apple TV
- Apple Watch
- Ios devices.
Apple Music is an excellent streaming service where you can release your music and get paid when your fans stream. It has the best pay-per-stream, although Spotify has the most extensive fan base and gives you tools to market your music.