Report uncovers Spotify Discovery Mode drags down overall payouts, niche genre earnings outpace mainstream, TikTok virality usually does not drive an uptick of royalties, and more
NEW YORK, Jan. 23, 2025 /PRNewswire/ -- Duetti, a music platform democratizing catalog monetization for independent artists, has released its second annual Music Economics Report. The report utilizes proprietary data and analytics, based on millions of data points and sophisticated quantitative analysis of industry trends. The report finds that following years of large annual declines, industry-wide earnings per stream for independent artists are starting to stabilize. In 2024, artists and other master owners received $3.41 per 1,000 streams - only a slight decline (of less than 2%) versus the prior year. Since 2021, per stream rates declined by an average of 7% annually.
The specific economic dynamics differ across the popular streaming services:
- Spotify continues to have amongst the lowest payout rates ($3.0/1,000 streams) due to their reliance on ad-supported plans, their Discovery Mode program, larger market share, and geographical mix.
- YouTube offered the highest YoY increase (up $0.5 to $4.8/1,000 streams in 2024), driven by increases in subscription programs versus ad revenues, although per stream rates vary widely across artists due to revenue mix.
- Apple Music payouts remain strong ($6.2/1,000 streams) due to their foothold in higher-price markets and the lack of ad-supported tiers.
- Amazon Music has continued to pay the highest rate to artists ($8.8/1,000 streams) among the larger platforms, as their services are bundled within Prime memberships.
Furthering Duetti's core mission to expand financial opportunities for the independent music community, the report offers important insights to help contextualize finances based on key data-backed takeaways including:
Although Spotify remains the most important revenue driver, the landscape is rapidly changing due to YouTube challenging their momentum
- From 2023 to 2024, YouTube's "wallet share," or percentage of an artists' streaming income, increased 3%, while Spotify's decreased 2%. This is exacerbated in certain genres; in Electronic/Dance, YouTube's "wallet share" increased by 17% - while Spotify's decreased the same amount.
- Spotify's Discovery Mode program is a key factor in lowering overall per stream payout rates: Artists who opt into it benefit from more algorithmic exposure - but have to accept a 30% reduction on payouts from the incremental streams.
More often than not, going viral on TikTok does not necessarily equate to artists achieving sustainable streaming growth, and TikTok video payout lags far behind streaming platforms
- Only 15% of artists who "go viral" on TikTok see an increase in average Spotify streams of greater than 30% four months after the pre-viral baseline.
- Viral tracks are defined as doubling TikTok video creations using that track within one month, with a minimum of 250K TikTok video creations
- Per 1,000 TikTok video creations, artists only earn $0.5 - far below the earnings across major DSPs.
Audience listening habits drive niche genres to generate more earnings per stream than mainstream genres
- Niche genres, such as Goth Punk, Phonk or Hyperpop, earn $0.3 (or 8%) more per 1,000 streams on average compared to mainstream genres like Pop or Hip-hop
- Increased payout rates are due to more favorable free vs. paid user mix and less usage of Spotify's Discovery Mode by artists in these categories.
"Although per stream rates are showing signs of stabilizing, we've dug deeper to uncover the nuances indie artists need to be aware of when trying to understand their income mix and trends," says Lior Tibon, CEO and co-founder of Duetti. "Our mission is to ensure our partners, and the wider independent artist community, have a clear view of the shifts in the industry landscape that can have an impact on them, whether that's the growing importance of YouTube or the impact of Spotify's Discovery Mode."
Since starting operations in 2022, Duetti has become an essential ally in helping independent artists expand their financial opportunities. With an expanded footprint and over $235M of dollars raised, Duetti has worked with hundreds of artists across genres, fueling creativity and financial independence.
"Duetti not only helps me fully understand the financial worth of my catalog, their data driven approach gives me valuable insights as well," said Duetti artist Brentrambo. "Their research-driven support has unlocked opportunities - like access to their playlist network has given me a new outlook on the future of my digital presence and marketing."
Duetti's Second Annual Music Economics Report for Independent Artists is available to download at duetti.co/report
About Duetti
Duetti was founded by Lior Tibon, former COO of TIDAL, and Christopher Nolte, former Business Development executive at Apple Music, with the mission of getting a wide range of artists quick and easy access to catalog sales and unlocking new investment opportunities. Leveraging their experience in streaming and support from innovative music and technology investors including Flexpoint Ford, Nyca Partners, Viola Ventures, and Roc Nation, Duetti's music platform has provided over 500 artists up to $3 million per transaction. The proprietary model provides data-driven prices for established tracks, allowing artists to sell individual tracks or even parts thereof, while Duetti then markets those tracks going forward using proprietary ROI-focused techniques.
Photo - https://mma.prnewswire.com/media/2604344/Duetti_earning_per_stream.jpg
Photo - https://mma.prnewswire.com/media/2604345/Duetti_YouTube_challeging_Spotify.jpg
Photo - https://mma.prnewswire.com/media/2604346/Duetti_TikTok_viral_songs.jpg
Photo - https://mma.prnewswire.com/media/2604347/Duetti_niche_genres.jpg
Logo - https://mma.prnewswire.com/media/2068532/Duetti_Logo_Logo.jpg
View original content:
Voltar noticias em Inglês