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Streaming services take a cut from your subscription cost, but how much?

Recently there has been lots of discourse around just how much streaming services payout and how payments work. As well as what percentage of your subscription payment does each company takes. The answer is BOTH take 52%. So, for every dollar made both companies take 52 cents for themselves, whilst paying out 48 % to publishers and labels or rights holders.

Recently there has been lots of discourse around just how much streaming services payout and how payments work. This has led to Spotify releasing their ‘Loud and clear’ website which aims to bring transparency to the inner details of how their service works. However, the website fails to discuss Spotify’s external incomes such as subscriptions, advertisement (on its free accounts), payola schemes for playlist promotion, and algorithm prioritization.

Apple Music also recently sent out a letter to its artists, publishers, labels, and other stakeholders detailing and clarifying how they payout. They also confirmed that they would be paying 1p per stream, 2-3 times more than what Spotify offers.