Music Streaming: How Are Artists Paid and How Can We Support Them?
© Qobuz 2025
Music streaming has profoundly transformed the music industry. In the past, artists primarily earned a living from physical album sales and concert tickets. The rise of streaming has radically changed this economic model. Today, revenues mainly come from online plays on streaming platforms.
This shift raises major questions about artist compensation: How does this model affect musical diversity and artistic creativity? Are the revenues generated by streaming enough for artists to make a living from their art? What role do streaming subscribers play in this equation?
Understanding how music streaming works is key to better supporting artists and fostering a fairer environment for everyone in the music industry.
How Are Artists Paid?
Artist remuneration is complex and involves multiple players:
Recording artists are paid by their labels.
Songwriters and composers receive royalties from their publishers and collective management societies like ASCAP/BMI/SESAC, in addition to their performance earnings.
Independent artists are paid directly by their distributor or aggregator (such as TuneCore or CD Baby).
There is no direct relationship between streaming platforms and artists. Platforms distribute revenues from subscriptions and ads to labels and distributors, who then compensate artists according to their contracts.
The most common payout model is pro-rata, where remuneration is tied to the percentage of overall streams. This system raises fairness concerns, especially for lesser-known or independent artists. For example, a long classical music piece generates fewer streams than a short pop song.
Qobuz: A Model Supporting Artists and Artistic Creation
Qobuz was founded with the goal of offering a unique and authentic music experience. We strive to preserve the value of music, promote its diversity, and build a sustainable model for artists, rightsholders, and the music industry. A music consumption model that respects both the artist and their work is essential for fostering high-quality artistic creation.
This commitment translates into concrete actions:
No Free, Ad-Supported Subscription
We prioritize a fully paid model, which is the most beneficial for all stakeholders in music creation. Unlike the freemium model, which combines free and paid access, our approach prevents the devaluation of music and ensures sustainable industry growth. This results in higher payments to rightsholders and, ultimately, to artists.
High-Quality Subscription Offers
All our plans provide lossless audio quality, including Hi-Res streaming. We have deliberately chosen not to offer MP3 subscriptions, as compressed formats compromise the listening experience. Our pricing model balances two key objectives: ensuring fairer compensation while making high-quality streaming accessible to as many people as possible. This approach both values the artists’ work and enhances the listening experience for our users.
Music Purchases via Downloads
Qobuz stands out as one of the few platforms that offer Hi-Res music downloads. This model is particularly lucrative for artists, as it provides direct and higher remuneration, unlike streaming, which is based on per-subscriber payouts. These two consumption methods complement each other, with download revenue adding to streaming earnings, further supporting creators.
For example, the download purchase of Fleetwood Mac's album Rumours (2001 Remaster), remunerates artists on the basis of $18.19 for high-resolution and $15.79 for CD quality.
Editorial Strategy That Highlights All Music Genres and Artists
We celebrate all styles of music with a uniquely curated approach to streaming. With Qobuz Magazine and Qobuzissime awards, we spotlight emerging talents and underrepresented genres like jazz and classical. This visibility increases a wider range of albums’ chances of discovery, allowing lesser known releases to garner more streams, and overall generating more revenue.
Concrete Figures: Our Commitment to a Sustainable and High-Quality Music Industry
In a move toward transparency, Qobuz is the first streaming platform to officially disclose its average per-stream royalty rate.
For the 2023-2024 fiscal year, Qobuz distributed US$0.01873 per stream in royalties to labels and publishers. This means that for 1000 streams of a song on Qobuz, US$18.73 is paid to rightsholders, who then distribute earnings to artists, songwriters, and composers based on their contracts.
In terms of average revenue per user (ARPU)— which measures how much a platform generates on average per user over a given period, Qobuz generated an average revenue of US$121.13 per year, where the market average is US$22.38 per year. This means that Qobuz generates on average five times more revenue per user than the market average, which results in a significant impact on artists' remuneration.
How Can You Support Fairer Artist Compensation?
By choosing Qobuz, you actively contribute to supporting artists. Here’s how:
Payouts – Each stream on Qobuz generates higher payouts for music creators than reported industry norms.
Supporting Diversity – Exploring our rich catalog helps redistribute streaming revenue more equitably.
Quality & Value – Opting for a high-quality paid subscription reinforces that music has value and deserves investment.
Impact – Your listening choices and music purchases have an impact on artists’ earnings.
With Qobuz, your commitment supports high-quality music creation and contributes to a diverse and thriving music industry.
