Does it really matter which streaming platform pays artists the most?
By Matt Mateus
Posted in Guides
Every few months, a new chart, video, or blog post comparing music streaming payouts makes the rounds. These comparisons fuel debates over which platform is the most artist-friendly. On the surface, this might seem like useful information. But in reality, focusing too much on per-stream payouts misses the bigger picture.
As independent musicians, we already wear too many hats—songwriter, producer, marketer, business owner. It’s exhausting. While understanding the basics of streaming is important, obsessing over which platform pays the most isn’t the best use of your energy. Here’s why.
The problem with comparing music streaming payouts
Streaming platforms allow people to listen to music on demand, usually through paid subscriptions or free, ad-supported plans. There are dozens of these services, some more well-known than others, and some catering to specific genres, regions, or sound quality.
To get your music on these platforms, you need a distributor like DistroKid, CD Baby, or one of the many others. They handle delivery, collect royalties, manage connections with the platforms, and take a cut of your earnings. You can choose which platforms to distribute to, and some artists have strong opinions about which platforms they want their music on. To understand why, we need to look at the payment models.
Making money from streaming isn’t simple
Most platforms use a pro-rata payment model, meaning all revenue goes into one big pool and is then divided based on total streams. Here’s an analogy:
Imagine a restaurant where all the servers’ tips go into one big jar. At the end of the night, the tips are split based on who served the most tables. Even if a customer only tipped one specific server, their money still gets shared with the top-performing staff - those that served the most tables.
This is why independent artists often see little from streaming revenue. Even if a listener only streams indie music, their subscription money mostly goes to major artists because those artists get the most total streams.
Some platforms have even stricter requirements. For example, Spotify requires a track to hit 1,000 streams before it even starts earning money. That’s like waiting tables all night and making no tips unless you serve a minimum number of guests.
An alternative to this system is the user-centric model, where a listener’s subscription fee is divided only among the artists they actually stream. SoundCloud uses this approach with their Fan Powered Royalties, but most major platforms have stuck with the pro-rata model.
Higher per-stream rates don’t tell the whole story
Some platforms offer higher per-stream payouts, but that doesn’t mean they’re better for your career.
For example, a recent video by Benn Jordan found that Peloton—yes, the fitness company—had the highest per-stream payout, followed by the French platform Qobuz. This might seem like an opportunity, but there’s more to consider.
Higher per-stream payouts usually happen for two reasons:
Fewer subscribers → Less competition for revenue
Less music on the platform → More money available per stream
While this might sound appealing, these smaller platforms often lack essential features like:
Discovery tools (playlists, algorithm-driven recommendations)
Engagement features (artist profiles, fan interactions)
A large listener base
If you focus only on platforms with higher payouts but low engagement, you’re not maximizing your reach. A higher payout means nothing if no one is listening.
What actually matters?
Instead of focusing on per-stream rates, ask yourself:
How many engaged listeners can you reach?
Does this platform help you grow your audience?
A sustainable music career isn’t built on streaming payouts alone. It’s about engagement, branding, and diversifying your revenue streams (which sounds like business speak - because it is).
If you want to explore more income streams, check out this post about the variety of ways musicians can make money.
Streaming is just one piece of the puzzle
Having your music on streaming platforms isn’t enough. You need to:
Claim and update your artist profiles on each of the platforms
Add photos, bios, and social media links
Use promotional tools like playlists, videos, and lyrics
And even then, streaming alone won’t pay your bills unless you’re getting millions of streams per month. Instead, think of streaming as a discovery tool—a way to attract listeners and guide them toward income-generating opportunities like:
Merch
Live shows
Fan support platforms like Patreon
Direct-to-fan sales like Bandacamp
And just like you shouldn’t rely on one revenue stream, you shouldn’t rely on one platform.
If Spotify shut down tomorrow, would your music career survive? If not, it’s time to rethink your strategy.
Social media and streaming platforms control access to your fans, meaning they can change the rules anytime. To protect your career, invest in platforms you own:
Your email list
Direct-to-fan relationships
Industry people call this fan ownership, but really, it’s just independence.
The bottom line
Streaming platforms are valuable tools, but they shouldn’t be the foundation of your career. Instead of worrying about which one pays the most per stream, focus on what actually helps you grow—
Building an audience
Keeping them engaged
Creating multiple ways for them to support your music
