However, it’s not as simple as it sounds…

These fees are a vital source of income for songwriters and artists.

Streaming royalties are the fees paid to rights holders (e.g., artists, record labels, songwriters, publishers, etc.) every time a song is played on music streaming services such as Spotify, YouTube, and Apple Music. These platforms function much like a radio, playing songs to listeners at random, without the ability to select specific tracks.Īs you can expect, the music royalties are much higher for on-demand services compared to non-interactive platforms! What Are Streaming Royalties? Non-interactive streaming platforms include services such as Pandora and internet radio websites. Listeners can hear any song whenever they see fit. They are placed in this category for their music being ‘on-demand’. On-demand services include platforms such as Spotify, Apple Music, and YouTube. There are two types of steaming service: On-demand and Non-interactive.

That’s an incredible amount of people, and we’ve not even mentioned other music streaming services yet!ĭespite the incredible numbers of music fans taking to music streaming services, there’s still one big issue that lurks over the streaming world… Music royalties! But first, let’s have a look at the types of streaming platform… Types Of Streaming Service

The release of iTunes in 2003 followed by the later release of Spotify in 2006 forever changed the way people consumed music.Īpproximately 286 million people use Spotify to consume music, with roughly 130 million of those listeners being paid subscribers. The recorded music industry isn’t what it used to be.

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