Spotify experiences drop in average per-stream payout

According to a report posted by artist-rights blog The Trichordist, the average per-stream rate received by global streaming giant Spotify has fallen by approximately 16% since 2014.

Spotify was generating US$0.00521 per stream back in 2014. Only two years later, the aggregate net average per-play has dropped to $0.00437.

Despite the steep fall, the report notes that Spotify accounts for a hefty 69.6% of label’s overall streaming revenue and 63% of all streams, which firmly positions it at the top of streaming company earners in what appears to be a monopolised market.

Apple Music came in at second place in the list of label’s total streaming revenue, accounting for 13.4% of the total – a significant distance away from first placed Spotify. However, their average per-stream payout is more than double that of Spotify’s with a rate of US$0.00735.

YouTube’s licensed subscription service, YouTube Red, also features in the report. Interestingly, YouTube generate over 21% of all licensed audio streams for labels, but less than 4% of overall label streaming revenue.

The top 10 streamers of 2016, which includes the above mentioned as well as Google, Deezer, Rhapsody, Xbox Music, Amazon, Tidal and Telecom Italia, make up an astounding 99% of the total streaming market, according to The Trichordist’s report.

In fact, the top six entrants (Spotify, Apple, Google, YouTube, Deezer and Rhapsody) account for 97.8% of market share for label streaming revenue.

The average per-stream rate for all 30 services included in the report is US$0.00395, marginally less that Spotify’s average rate payout. The highest rate belongs to Akazoo, a service owned by technology company InternetQ, with a per-stream rate of US$0.378. However, the service averaged only 16 streams per album and two streams per song in 2016.

The data set developed in the report is isolated to the previous calendar year and represents an indie label with a catalogue that bears approximately 150 albums and generates over 115 million streams.