How many streams does it take to earn minimum wage?

Several weeks have passed since an artist of note shared their streaming royalties to express outrage with a flawed system, but it’s important to remember that silence is rarely an indicator of resolution. In truth, many who feel inadequately compensated for their work have no idea what, if anything, can be done to fight for better royalties. Others have given up the fight entirely, choosing instead to appreciate what little they do make because every bit helps.

Information Is Beautiful has been studying the most popular streaming services and their relationships with artists/labels for years. Their latest report analyzes data from Napster, Tidal, Apple Music, Googleplay, Deezer, Spotify, Pandora, and YouTube to determine several important numbers:

• Artist revenue per play.
• Total users (millions) per platform.
• Percentage of free users on the platform.
• Plays needed to earn minimum monthly wage ($1,472).
• Total annual loss reported by the streaming platform.
• Annual loss per user.

The results of this analysis apply to unsigned artists ONLY. Signed artists often have their material distributed through their label, who may have a different streaming agreement with platforms than the average DIY talent.

Our friends at Digital Music News have an in-depth breakdown of the latest IIB report that you can read at your desire, but right now we are focusing on what it takes for an average musician to make a livable wage. 

According to the chart shown above, musicians need two hundred thirty thousand monthly plays on Apple Music to generate roughly $1400. That’s three hundred and eighty thousand plays on Spotify for the same number. Deezer (260,000), Googleplay (250,000), and Tidal (130,000) all require similar levels of performance.

Keep in mind this is $1400 total. As in, everyone in the band or group has to split that amount. After you deduct costs and divide what remains that is barely enough to cover monthly cell phone costs and a mileage, let alone meals or other basic necessities. In order for ever member of a four person band to make a livable wage from streaming alone their material needs to be easily surpassing one million plays a month, and that – as many artists would tell you – is no easy feat.

How do we change this?

The debate over streaming royalties will not be ending anytime soon. The problem independent artists face that those signed to a major do not is leverage. Majors have catalogs streaming services need to succeed, which makes them more likely to bend to the demands of said label. Independent artists don’t have that kind of pull on their own, but perhaps a joint effort by hundreds or thousands could. Organization, however, will be difficult.

In the meantime artists must continue to be vocal about their concerns with streaming so that fans/consumers go the extra mile to support their favorite acts. Artists need to also start considering other revenue streams, including Patreon, as a way to further their career while also offering their fans additional access into their creative process. Music is more personal than ever, with everyone able to curate a personal soundtrack to life they listen to everywhere they go. In order to cut through the noise and establish a mutually beneficial relationship artists need to always be seeking ways to further connect with those who care about them most. That is where the key to longterm success, both financially and commercially, lies.