this post was submitted on 03 Jun 2024
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Apple Music only raised the price by $1 since the launch in 2015 (9 years ago). But they added cool features like lossless audio quality and Dolby Atmos. They also had lyrics like 6 years before Spotify added them. I think you can even get it for $6 dollars if you're a student.
They also payout about 2.5X what Spotify does to artists.
How does this work? Spotify has a deal with the music publishers, where they give 70 % of all subscription income to the music companies. The music companies (Sony, Warner, etc) then split the money based on the share of streams.
How can Apple pay out 2.5x70 %, so 175 %? Are thes losing with every subscription?
Think of it not in terms of revenue percentages, but by payouts per song stream:
| Service | Payout/song | Plays to make $1 | | ------------- | -------- |
| | Tidal Music | $0.01284 | 78 | | Apple Music | $0.008 | 125 | | Amazon Music | $0.00402 | 249 | | Spotify | $0.00318 | 314 | | YouTube Music | $0.002 | 500 | | Pandora | $0.00133 | 752 | | Deezer | $0.0011 | 909 |
So song for song, Apple is paying 2.5x what Spotify is (.008/.00318), and Tidal is paying out a whopping 4x what Spotify pays.
Sauce: https://producerhive.com/music-marketing-tips/streaming-royalties-breakdown/
That whole article is BS, they even say it themselves:
There is no payout per stream. Instead a fixed percentage of the subscription price is shared among each streamed song. So why does Tidal pay more then? Either their subscriber numbers are still incorrect (they have a history of publishing way higher numbers than in reality), their subscriber listen to less music (which is the main reason Apple Music pays more per stream on paper, since its often bundled) or their audience focuses more on a single artist (or a genre).
Sure. Obviously it’s more complex than that, but it helps illustrate where the math came from in the parent comment. I don’t know why Tidal pays more, but I’m hypothesizing its because most of their “co-owners” of Tidal are themselves, artists/musicians, which IMO is significantly better than the out of touch folks running Spotify.
Some lyrics are now disappearing from Spotify :-(
lmao
The $6 student plan also includes Apple TV+