Spotify says it pays recording and publishing rightsholders according to streamshare. What an artist ultimately receives also depends on the agreements between those rightsholders and the artist or songwriter.
The short answer
1. Revenue enters a pool
Spotify earns from subscriptions and advertising and allocates a share of music revenue to recording and publishing rightsholders.
2. Streamshare allocates it
Spotify describes an artist’s share in a market as that artist’s streams divided by total streams in that market for the period.
3. Agreements determine receipt
Rightsholders then pay artists and songwriters under their label, distributor, publisher and collection agreements.
A better way to estimate
Use your own statement as a dated observation, keep gross and net revenue separate, and model a range instead of converting every play with one universal number.
market streamshare = your streams in that market ÷ total streams in that market artist receipt = rightsholder revenue adjusted by the artist’s actual agreements
Sources: Spotify for Artists — Royalties Guide and Spotify Loud & Clear — why a per-stream rate is misleading.
Frequently asked
How much does Spotify pay for one stream?
Spotify does not publish or pay one universal per-stream rate. Its official explanation uses streamshare and rightsholder agreements.
How many Spotify streams make a specific income?
No single stream count guarantees a specific income. Use a range from dated statements and separate gross rightsholder revenue from the amount that reaches the artist.
Does Spotify pay the artist directly?
Spotify says it pays selected recording and publishing rightsholders. Artists and songwriters are then paid under their agreements with those parties.
Why do public averages differ?
They can use different periods, markets, plans, rights categories and gross-versus-net definitions. An average is not a tariff.