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The question is, though, how do artists make money on Spotify?
However, it is important to note that Spotify does not pay artists or songwriters directly. Instead, Spotify pays the rights holders to the music streamed on the platform. They usually record labels, distributors, aggregators, or collecting societies.
Recording royalties: This is money that is owed to rights holders for recordings that are streamed on Spotify. It is paid to artists through the licensor that delivered the music, which as a rule is the artist's record label or distributor.
Typically, recording royalties make up about 75 to 80 percent of the royalties paid to rightsholders, which makes the publishing payout roughly 2o to 25 percent.
Spotify has paid out over $25 billion in total royalties to rights holders, and that number is rapidly increasing.
The analytics that independent artists have access to via Spotify for Artists includes information about demographics like sex, median age, and geographical region.
An artist can use this info for planning a tour in areas with the highest concentration of fans and target merch to specific groups.
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