The ways in which music streaming services generate revenue and how that revenue is divided has been a topic of both controversy and confusion. This article helps break down how much money is made from streaming services like Spotify and Pandora, and how it is divided.
Guest Post by Bobby Owsinski on Music 3.0
- What type of service (interactive like Spotify, or non-interactive like Pandora)
- Which tier (free or paid subscription)
- Which territory it's played in (they all pay different royalty rates)
- Your marketshare (on Spotify you get paid more if you get played more)