In a recent episode of the Business Untitled podcast, Snoop Dogg, the legendary rap star from the West Coast, opened up about the financial side of streaming and revealed the surprising amount he earned when his music hit one billion streams on Spotify. The disclosure has sparked discussions about the intricacies of artist earnings in the streaming era.
Snoop Dogg shared that he received less than $45,000 for reaching the milestone of one billion streams on Spotify. However, it’s important to clarify whether this figure encompasses total earnings or specifically refers to publishing royalties. Publishing royalties are divided among songwriters, including both music and lyric contributors, differentiating them from recording royalties, which benefit those who own the sound recording.
Spotify’s Payment Structure:
On average, Spotify pays artists approximately $0.0035 per stream. Yet, this amount doesn’t directly reach the artist, as it undergoes various splits with record labels, managers, credited songwriters, and Spotify itself. The claimed $45,000 for a billion streams seems surprisingly low, leading to questions about the accuracy of such estimates.
Comparisons and Expectations:
Contrastingly, a recent Variety report suggests that Taylor Swift could earn over $100 million from Spotify streams in a single year, accumulating an impressive 26.1 billion streams. Given these numbers, Snoop Dogg could realistically expect to earn between $3-4 million from Spotify, assuming there are no significant revenue diversions by a label. It’s also worth noting that Taylor is not only a songwriter but composer as well. Her ownership share for publishing could be much greater and if she owns her own masters, she gets to collect money not only on the publishing side (composition copyright) but also on the master side (sound recording copyright).
Future Changes:
Spotify is set to change its royalty model in the first quarter of the coming year, according to a November report from Music Business Worldwide. This shift may impact how artists are compensated for their streams. As of January 2024, songs must achieve a minimum threshold to qualify for royalties, a move that could affect the earnings landscape for artists on the platform.
Snoop Dogg’s revelations about his earnings from one billion Spotify streams shed light on the complexities of the music industry’s streaming economy. As the landscape evolves and platforms like Spotify modify their payment structures, artists and fans alike will continue to navigate the ever-changing dynamics of the music business.
As we delve into the intricacies of Spotify streaming and artist earnings, it’s crucial for musicians and their teams to ensure they are not missing out on hard-earned royalties. Reach out to our team and book a free music business assessment and to learn more about our Catalog Audit Service to uncover any missing royalties and optimize your revenue streams. Don’t leave money on the table – let us help you make the most of your music career!