The short answer? It’s highly unlikely. As much as artists and fans dream of that golden figure, the current structure of the music industry, and the economics behind streaming platforms, make it virtually impossible to ever reach $1 per stream. Here’s why.
The Current Reality: Fractions of a Penny
If you’re a musician today, you’re probably all too familiar with how streaming platforms work. For every stream of your song, you earn a small portion, which is usually a fraction of a penny. While some platforms offer slightly higher payouts than others, artists generally receive between $3 and $8 per 1,000 streams. Sounds low? That’s because it is.
But why is the amount so small? It’s all about how the revenue is split. Streaming services don’t pay artists directly. Instead, the money is divided between record labels, publishers, and the platform itself, with the artist receiving only a slice of what’s left. On average, platforms keep about 30% of the revenue, with record labels grabbing 58%, leaving just 12% for publishers. For artists signed to a label, the earnings are further reduced, with typical deals paying them about 15% of their label's share. So, out of the payout for 1,000 streams, only a few cents actually trickle down to the artist. Here’s a chart on how much revenue is generated on different platforms:
Streaming Platform | Total Payout 10,000 Streams | Record Label’s Share | Publisher’s Share | Platform’s Share | Artist’s Share |
Youtube Music | $80 | $39.44 | $9.60 | $24 | $6.96 |
Apple Music | $60 | $29.58 | $7.20 | $18 | $5.22 |
Amazon Music | $60 | $29.58 | $7.20 | $18 | $5.22 |
Spotify | $40 | $19.72 | $4.80 | $12 | $3.48 |
SoundCloud | $30 | $14.79 | $3.60 | $9 | $2.61 |
~ Rough Estimates in CAD
Could a Dollar Per Stream Ever Be Reality?
Could a Dollar Per Stream Ever Be Reality?
With the current model, earning $1 per stream would require a massive shift in how streaming platforms operate—and it's not just about increasing subscription fees. Let’s do the math. Right now, the average payout per stream is a small fraction of a cent, and artists are already facing a struggle to make a living from streaming alone. If streaming platforms suddenly paid $1 per stream, they’d need to generate massive revenue to cover those costs, which just isn’t realistic given their business models.
The vast majority of streaming platforms operate on razor-thin margins, which is why they’ve resisted price increases for years. Even the small bump in subscription fees in 2023 barely scratched the surface when it comes to improving artist payouts. And that’s just one part of the puzzle. These platforms also rely heavily on advertising revenue, which fluctuates based on market conditions and competition for users’ attention.
The "Living Wage for Musicians Act" – A Step Forward?
A recent bill introduced in the U.S. House of Representatives by Reps. Rashida Tlaib and Jamaal Bowman propose a new royalty fund that would pay artists directly, bypassing record labels altogether. The bill aims to increase artist payouts to a penny per stream, not one dollar. Even reaching this relatively modest goal would require significant changes, including mandating a fee equal to 50% of subscription prices and diverting 10% of all non-subscription revenue toward artist payments.
In theory, this sounds like a game-changer. However, in practice, it would face strong opposition from both record labels and streaming platforms. The major players in the music industry, like labels, have powerful lobbying groups, and they’re unlikely to support anything that cuts into their profits. Plus, the idea of capping royalties for tracks that generate more than 1 million streams per month—and redistributing the extra to smaller artists—could alienate major stars and their labels, who benefit the most from the current system.
How Artists Can Still Thrive with Holdr
While the dream of streaming platforms paying $1 per stream seems out of reach, artists have alternative ways to generate revenue and thrive with Holdr being one of the most exciting options.
Holdr gives artists the ability to directly engage their fans by offering collectible memberships that unlock exclusive content, perks, and experiences.Through auctions and direct sales, artists can set their own membership prices, giving them full control over their revenue streams. These memberships can range from early access to new music, behind-the-scenes content, or even virtual meet-and-greets. Fans are eager to support their favorite artists, and Holdr allows them to invest in unique experiences and collectibles that deepen their connection.
Plus, with Holdr’s membership marketplace, fans can trade or sell their memberships, adding an additional layer of value. This creates a sustainable ecosystem where both artists and fans benefit. By empowering artists to take control of their income and build direct relationships with their supporters, Holdr helps artists thrive without relying solely on streaming income.
The Bottom Line
While streaming platforms might not be able to pay $1 per stream, platforms like Holdr empower artists to take control of their careers by creating additional revenue opportunities and engaging with their fans on a more meaningful level. With Holdr, you’re not just relying on the numbers, you’re building a community.
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