Blog

How Spotify Royalties Actually Work

Updated October 1, 2026

“How much do I earn per stream on Spotify?” sounds like a simple question. It isn’t, and that’s not your fault. Here’s the short version.

One song, two copyrights

Every recorded song contains two separate copyrights, and each one gets paid separately:

  1. The sound recording (the “master”) is the actual recording. It’s owned by the artist or their label. Royalties for the master flow from Spotify → your distributor → you.
  2. The composition (the “song”) is the lyrics and melody. It’s owned by the songwriters and their publishers. These royalties flow through a different pipeline entirely.

The publishing side splits again

Composition royalties from streaming are split into:

  • Mechanical royalties: in the U.S. these are collected by The MLC and paid to publishers or self-administered songwriters.
  • Performance royalties: collected by performing rights organizations (PROs) like ASCAP, BMI, SESAC or GMR, and paid to writers and publishers.

If you write your own songs and you’re not registered with a PRO and The MLC, you are probably leaving money on the table.

There is no fixed “per-stream rate”

Spotify doesn’t pay a set amount per play. It pays rights holders a share of its revenue, divided by each rights holder’s share of total streams in a given country and month. So your effective per-stream rate changes with:

  • Where your listeners are (country)
  • Whether they’re on Premium or the free, ad-supported tier
  • Your deal with your distributor or label

Spotify also now requires a track to reach a minimum number of streams over the past 12 months before it generates recorded-music royalties. That’s one more reason building real, engaged listeners matters more than chasing playlist numbers.

What to do now

  1. Release through a distributor that gives you clear, line-by-line statements.
  2. Register your songs with a PRO and The MLC (or use a publishing administrator).
  3. Split sheets: agree on ownership percentages with every collaborator before release.

Want help getting your royalties in order? Request an invite and talk to our team.