Frequently Asked Question
Spotify Royalty Calculations Explained
Last Updated about a month ago
Spotify determines royalty payments at the end of each month by assessing a track's share of total streams. For example, if a track represents 1% of all streams on Spotify during a given month, it will receive 1% of the total royalty pool for that period.
Previously, Spotify factored in all streams when calculating a track's share of total streams. However, starting in April 2024, the platform will only consider tracks that have achieved a minimum of 1,000 global streams within the past 12 months for streamshare calculations.
As a result, a track becomes eligible to earn royalties from all its streams in the month it meets this criterion. Streams accrued prior to reaching this threshold will not generate royalties.
For instance, if a track accumulates over 1,000 streams in its initial month on the platform, it will qualify for royalty calculations based on its total streams for that month. Conversely, if a track has 750 streams in its first month and 500 in its second month, it will earn royalties for all 500 streams in the second month and will continue to do so in subsequent months, provided it maintains its eligibility.
Previously, Spotify factored in all streams when calculating a track's share of total streams. However, starting in April 2024, the platform will only consider tracks that have achieved a minimum of 1,000 global streams within the past 12 months for streamshare calculations.
As a result, a track becomes eligible to earn royalties from all its streams in the month it meets this criterion. Streams accrued prior to reaching this threshold will not generate royalties.
For instance, if a track accumulates over 1,000 streams in its initial month on the platform, it will qualify for royalty calculations based on its total streams for that month. Conversely, if a track has 750 streams in its first month and 500 in its second month, it will earn royalties for all 500 streams in the second month and will continue to do so in subsequent months, provided it maintains its eligibility.