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Earlier this year when obtained a copy of Sony’s Spotify contract, we noted that Spotify uses a complex formula to determine the royalties artists earn from streams.
And I'm paying Spotify's per month subscription fee; if I were relying on its free, ad-supported tier, the payout for artists would be even smaller. Here's about how much some other Verge staffers paid their favorite artists (technically, the rights holders) this year. That means Drake earned somewhere in the ballpark of million from Spotify.
Rihanna, with over 1 billion streams, earned around million.
Unless this model changes, or labels take a smaller cut of the profits, the numbers will remain minuscule for smaller artists.
But Year in Music makes that talking point clear on a personal level.
And that $2.24 is distributed among the music's "rights holders," which includes labels and publishers. My most-streamed track of the year was The-Dream’s "That’s My Shit," and I’m sure Terius Nash appreciated the 27 pennies that earned him. The most popular artists on Spotify are racking up millions of streams worldwide, which actually does translate into a lot of money.