This is what we’re focusing on with this report.

We don’t have any data on how this is working yet. Instead of paying a fee up front for advertising, you instead take a lower payout rate for the promoted streams. Spotify is offering labels and artists the ability to essentially advertise their songs on the platform as suggested songs to listeners (once they finish listening to their chosen song/album/playlist). This is a very new thing that Spotify is experimenting with.

As of December 31st 2020, of Spotify’s 345 million monthly active users, only 155 million of them are subscribers. Ad supported streams pay much less than subscription supported streams. Worth noting that Apple Music pays a lot more than Spotify across the board because Apple Music does not offer a free, ad-supported streaming experience to users. So Spotify (and Apple) will pay-out more for a stream from a listener on a $9.99/mo premium plan versus a listener on the free, ad-supported or family plans. Spotify and Apple also pay differently based on the listener’s plan. Not to mention the free, family and discount plans.įor the ad-supported free plan on Spotify (Apple Music only has a 3-month trial – without ads) advertisers pay more for US Spotify placement than they do for India Spotify placement, so the pay split (which has never been revealed) for ad-supported streams will also be much less. Why? Simply because the cost of a standard premium subscription in the US is about $10. Spotify and Apple Music pay more for a stream from a listener in the US than a stream from a listener in India. First let me break down the most obvious points: Country/Territory of the Listener Subscription plan level (free, family, student, discount, premium).There are around 800 different pay rates for each stream on Spotify. How much Spotify and Apple Music pay for a stream varies on many factors.

Does spotify cost money to use