Duetti, the groundbreaking music platform revolutionising catalogue monetisation for independent artists, has unveiled its second annual Music Economics Report. Drawing on millions of proprietary data points and advanced quantitative analytics, the report provides critical insights into the financial landscape of the music streaming industry. After years of sharp annual declines, earnings per stream for independent artists are finally stabilising.
In 2024, artists and other rights holders earned $3.41 per 1,000 streams, reflecting a slight year-over-year decrease of less than 2%. Since 2021, the average per stream rate had been declining by 7% annually, making this deceleration in decline a positive development for the music industry.
A Closer Look at Streaming Platforms
The report highlights platform-specific payout dynamics, revealing stark differences in earnings:
- Spotify: Among the lowest payouts, at $3.00 per 1,000 streams, attributed to its reliance on ad-supported plans, Discovery Mode, a large market share, and geographical factors.
- YouTube: Showed the highest year-over-year growth, increasing by $0.50 to $4.80 per 1,000 streams in 2024, driven by subscription growth over ad revenue.
- Apple Music: Maintains strong payouts at $6.20 per 1,000 streams, benefitting from its foothold in higher-priced markets and lack of ad-supported tiers.
- Amazon Music: Continues to lead payouts at $8.80 per 1,000 streams, bolstered by integration with Prime memberships.
Key Findings from Duetti’s Analysis
The report provides key takeaways to help independent artists navigate their financial strategies:
- YouTube’s Growth Challenges Spotify’s Dominance: Between 2023 and 2024, YouTube’s share of artists’ streaming revenue increased by 3%, while Spotify’s dropped by 2%. For specific genres like Electronic/Dance, YouTube gained a 17% revenue share, mirroring Spotify’s losses.
- Spotify’s Discovery Mode Trade-Off: Although Discovery Mode offers algorithmic exposure, it comes at a 30% reduction in payout rates, contributing to the overall decline in per stream earnings.
- TikTok Virality Does Not Guarantee Sustainable Growth: Only 15% of artists who go viral on TikTok see a Spotify streaming increase greater than 30% within four months. Moreover, TikTok payouts remain minimal, at just $0.50 per 1,000 video creations.
- Niche Genres Earn More Per Stream: Genres such as Goth Punk, Phonk, and Hyperpop generate 8% higher earnings per 1,000 streams compared to mainstream genres like Pop and Hip-hop. This is due to a more favourable mix of paid vs. free users and limited use of Discovery Mode.
Empowering Independent Artists
“While we’re seeing stabilisation in per stream rates, our analysis dives deeper to provide independent artists with the nuanced insights they need to understand and optimise their income,” said Lior Tibon, CEO and co-founder of Duetti. “Our mission is to empower artists with actionable intelligence, whether that’s recognising YouTube’s growing importance or understanding the impact of Spotify’s Discovery Mode.”
Since its launch in 2022, Duetti has become a trusted ally to independent artists, raising over $235 million and partnering with hundreds of artists across genres. Through its data-driven approach, Duetti helps creators unlock financial opportunities and navigate the evolving music industry landscape.
“Duetti has been instrumental in helping me understand the financial worth of my catalogue,” shared independent artist Brentrambo. “Their data-backed support and playlist network have given me a new perspective on the future of my digital presence and marketing strategies.”
