Join us in this article as we delve into the process of getting paid from the streaming platforms for your music. We’ll navigate through deciphering the rate per stream and outlining the timeline of royalty flows.
Royalty Rates:
Several sources will give an estimated figure based on the current climate. But in truth there is no way to tell how much one stream will generate. This is because the royalty rate per stream depends on several factors.
Here are a few factors which affect a royalty rate:
- The listener’s location: The platforms pay a different royalty rate country by country. This means that a stream from a listener in USA produces a different amount from a listener in India.
- Whether the listener is using a free account or they are a premium subscriber: If they are using a free account, royalties will be generated from the advertisements they are shown. Listeners with a premium accounts pay a subscription, usually monthly, which contributes to royalties.
- How long the listener plays the track: Spotify and Apple Music will only count a stream if the listener plays a track for over 30 seconds. So if a person listens for less time a royalty will not be generated.
- The rate we have negotiated with streaming platforms: we pride ourselves on negotiating the best deal possible for our clients. In an Ari’s Take article, Horus Music was noted as the distributor paying the most for Apple Music streams in the US and Brazil, and also the most for Spotify streams in Brazil.
Please NOTE: As the industry changes, streaming platforms may continue to change their royalty policies. For example, in 2023 Spotify announced a number of updates which can be read here.
Getting paid from the streaming platforms:
When you will get paid also varies from platform to platform, distributor to distributor. Each platform and distributor have different accounting processes, meaning some pay faster than others.
At Horus Music we pay all eligible clients after 90 days from when we receive royalties and reports from our DSP partners.
Many stores take up to 3 months to account to us. So when artists first sign up with us, there may be a 6-month delay before they receive royalties. During this time, clients can still log into their accounts and tracks sales and streams as they come in.
This payment timeline is in place to allow our accounts department the necessary time to investigate and ensure that royalties are rightly distributed, and deduct amounts from artists and labels who engage in streaming fraud activity. This pro-active measure aims to shield all non-fraudulent clients from potential ramifications arising from DSP-imposed fines and changes to accounting.
Please see below for an estimate of how long certain major platforms take to account to Horus Music:
- iTunes: 2 months
- Amazon: 3 months
- Spotify: 3 months
- YouTube: 3 months
- Deezer: 3 months
To ensure you are getting paid from the streaming platforms as efficiently as possible, it is important that your details are correct on your account.
We pay out royalties through Convera or PayPal. If you are based in the UK, we suggest you choose Convera as they do not take a cut, but the choice is yours. Our accounts team aim to pay out royalties on the 15th of each month, and you can check how much you’re owed by going to “Payments” in your account.
