How Apple Music Royalties Compare to Spotify
Apple Music pays roughly $0.007 per stream on average — noticeably higher than Spotify's roughly $0.003–$0.005 average. The gap comes down to business model: Apple Music is 100% subscription-based with no free ad-supported tier diluting the pool, while a meaningful share of Spotify's user base listens on the free tier, which pays out at a lower rate per stream.
Apple Music has far fewer total streams than Spotify. The higher per-stream rate doesn't necessarily mean higher total royalties — Spotify's much larger user base often means more total streams for the same release, even at a lower per-stream rate. Most independent artists see Spotify contribute a larger share of total streaming income despite the lower rate.
Typical Distributor Cuts
| Distributor | Typical Cut |
|---|---|
| DistroKid (annual plan) | 0% (flat annual fee instead) |
| TuneCore (annual plan) | 0% (flat annual fee instead) |
| CD Baby | 9–15% |
| Record label (indie deal) | 15–50%, varies widely |
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