Thursday, July 10, 2025

Spotify Isn't the Villain You Want It To Be

Stop Blaming Spotify for Your Low Income — The Swedish Solution Actually Pays Better Than Radio Ever Did

Here’s the dirty little secret nobody’s shouting loud enough: while everyone’s busy griping about Spotify’s “pennies,” this Swedish “solution to piracy” is quietly putting more money in songwriters’ pockets than Top 40 radio ever managed.

Spotify didn’t invent streaming just to be nice. It fixed the piracy mess by giving us a legal platform where creators actually get paid. And here’s the kicker — it pays better for songwriters than terrestrial radio ever did.


Radio’s Broken Model

Radio royalties come through performance rights organizations like ASCAP, BMI, and SESAC. But forget the myth of a fixed 6 cents per spin — the real number is much lower after all the splits and variables:

  • Real payout? $0.001 to $0.01 per spin, depending on market size, time of day, and licensing deals.

  • So a hit song getting 30,000 spins a month nets about $300 to $3,000 for the songwriter.

  • Those spins reach roughly 60 million listener impressions (not necessarily unique listeners).

  • Bottom line: Radio pays the same whether one person or a million hears your song.


Spotify’s Better Deal — Transparent and Scalable

Spotify pays from a total royalty pool of about $0.003 to $0.005 per stream — but that’s split between labels, publishers, distributors, and songwriters. The songwriter’s share is roughly $0.0005 to $0.001 per stream.

What does that mean?

  • To match radio’s $300-$3,000 from 30,000 spins, you only need 600,000 to 3 million streams.

  • A big hit with 5 million streams pays $2,500 to $5,000 directly to the songwriter.

  • Every play counts, no matter where the listener is or when they tune in.


Why Spotify Wins

  • Radio pays per spin, not per listener. Spotify pays per listen.

  • Anyone can upload to Spotify; radio airplay is locked behind gatekeepers and playlists.

  • Spotify fixed the piracy problem; without it, music theft would be rampant again.

  • Spotify’s global reach and transparent data mean fairer, measurable royalties.


Data Snapshot

PlatformPayout TypeEffective RateMonthly Songwriter Earnings (Example)Audience Reach
Terrestrial RadioPer spin$0.001 - $0.01 per spin$300 - $3,000 (30,000 spins)~60 million impressions
SpotifyPer stream$0.0005 - $0.001 per stream$2,500 - $5,000 (5 million streams)5 million actual plays

The revolution happened while we weren’t looking. Spotify didn’t kill songwriter income — it exposed how badly radio was paying all along.

So, if you’re still blaming Spotify for your low income, you’re just doing the math wrong. Spotify’s model is imperfect, sure — but it’s the best payout songwriters have ever had. And that’s the truth no one wants to hear.

No comments: