Drake has generated over $60 million off Spotify alone.
It’s no secret that the music industry was losing a lot of money the past couple years due to declining album sales. In the last decade, people would rather hear their music online rather than wait for physical copies to actually hit stores. So artists had to rely on touring and selling merchandise to make big profits. But lately, it would seem like artists have found a new way to cash in off their albums.
Music streaming services like Spotify, Apple Music and Tidal have taken over the music game. With access to huge music catalogs to pick from and unlimited streaming options at the click of a finger for only 10$ a month, you could see why it has become the new craze. The reason why these companies are able to charge for music streaming is because they have a deal with record labels and artists where they pay them a small fee (fractions of a cent) for each streamed song. Let’s take a look at exactly how much money a big artist can make off these streaming services.
Let’s take Drake for example, who has been all over the news lately for continuously breaking streaming records. His new album More Life broke Apple Music’s single day streaming record with 89.9 million streams in a 24 hour period. He also broke that same record on Spotify with 61.3 million streams ion the first day of his album release.
But the most impressive record came when Drake broke Spotify’s all time most streamed artist with over 10 billion streams. Let’s use this last number to see how much income Drake actually generated from streaming service to date. Spotify pays artists 0.006 cents per stream which means his 10 billion streams would net him a profit of $60 million. Drake’s last album Views would account for 12 million out of that 60 million dollars. And this is all only off Spotify.
The music industry is changing and a lot of artists are going independent lately because they can just distribute their music through these services. This is just the beginning as these streaming services are only getting bigger. If only the movie industry could learn something from this and start releasing movies on such a platform for a monthly fee. Would you be interested in something like that?