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  • Writer's pictureOren Sharon

A new law would make sure artists get at least 1 cent per music stream.

Spotify to pay 1 cent per stream
1 cent per stream

"Streaming has made big changes in the music business, but lots of independent artists are struggling to make enough money," according to US Rep. Rashida Tlaib, who is supporting the law.

A new law in Congress would make sure artists get at least 1 cent for every time their song is streamed online.

US Representative Rashida Tlaib wants to make sure musicians and artists get more money when their music is played on music streaming platforms.

The Living Wage For Musicians Act was named by Tlaib. She introduced the bill after working with Rep. Jamaal Bowman from New York, along with United Musicians and Allied Workers (UMAW) and artists from all over the country.

The bill aims to help musicians make more money. It wants to make a new rule that would make streaming companies pay at least one cent for each song played, and it would also limit the number of times a song can be played after one million streams.

A news release said: "Musicians will get paid from the money people pay to use the platform and from a 10% tax on other money made, so they get at least one cent for every time their song is played. This should help struggling artists earn enough money to live on from streaming. " The money would be shared fairly from a central fund, and there would be a limit on how much one song can make to make sure everyone gets paid fairly.

How much Spotify pays per stream right now
Spotify Streams

How much does Spotify pay per stream currently?

Currently, streaming royalties payment in the music industry varies on each streaming platform, and royalties are ridiculously low. Spotify pays artists about 0.003 to 0005 dollars for each time a song is played; Apple Music pays between $0.006 and $0.007; and Spotify pays from $0.0125 to $0.015 per stream. Currently, Spotify royalties pay artists the lowest royalty payments in the music industry, and Spotify is the leading music streaming platform. Spotify has about 388 million users, more than 5 times as many as Apple Music, and Spotify playlists are high on rotation. Read more about How much Spotify pays per stream in 2024

The impact on popular music streaming service

No doubt, this could be a real earthquake in the music industry. The streaming services would have to figure out where the money would come from and how they would pay for the billions of Spotify streams generated every year by listeners from around the world.

We might see small streaming services shutting down their doors following the new bill.

New bill to pay 1 cent per stream

How much will Spotify charge for a subscription under the new bill?

Spotify hasn't been profitable over the years, and this upcoming bill will shake things up in their business model. If the bill passes, Spotify and the other streaming services will most likely pass the costs on to the end user. This means the monthly listener subscription price for Spotify premium listeners will rise dramatically, and people will start paying more for listening to music.

We might see additional limitations for free users, less music available for free, and more restrictions.

The impact on artists.

This could have a real positive impact on artists, tripling their earnings per stream. Currently, Spotify pay artists about $4,000 for one million streams, if the new bill passes, the same amount of music streaming, will generate artists $13,000, that's a big change.

Spotify app
Spotify app

Additional notes

Tlaib believes that streaming has changed music, but many artists are still struggling to make enough money. She thinks it's important for musicians to get a fair share of the money made from their music so they can do well, not just get by.

The bill was proposed because people are really interested in how much streaming services pay artists. Spotify also announced a new way they would pay artists in 2024. Other bills related to music and the economy have been introduced recently, including one by Representative. Deborah Ross made changes to the Protect Working Musicians Act. The bill would allow artists to negotiate together for more money and protection from online music companies and AI developers.

upcoming changes in Spotify streaming royalties.
Spotify player

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