If you’re a musician deciding where to share your music, knowing how much each platform pays can help shape your strategy. SoundCloud and Spotify are two of the biggest names in the streaming world, but which one actually pays more? Let’s break it down.
How Does SoundCloud Pay Artists?
SoundCloud is unique in its approach to artist payments, offering two main methods for monetization:
- SoundCloud Premier Program: This program is available to independent artists who meet specific eligibility requirements. Premier members can earn revenue from ads that play during their tracks.
- Fan-Powered Royalties: SoundCloud’s Fan-Powered Royalties system is different from the traditional pooled revenue model. With Fan-Powered Royalties, the more your fans listen specifically to your tracks, the more you earn. Instead of dividing revenue among all artists based on total platform plays, SoundCloud pays you based on the direct support of your listeners.
In terms of how much SoundCloud pays per play, estimates range from $0.0025 to $0.004. It’s not a huge amount per play, but for artists with a dedicated fanbase, it can add up over time.
Spotify’s Payment Structure for Artists
Spotify operates on a slightly different model, using a traditional pro-rata or pooled system. Here’s how it works:
- Pooled Revenue Model: Spotify calculates artist payments by pooling all revenue from subscriptions and ads, then dividing that pool among all streamed tracks. Your earnings depend on your share of total streams on the platform. For example, if your tracks make up 0.01% of all Spotify streams in a given period, you’ll receive 0.01% of the revenue.
- Pay Per Stream Rate: Spotify’s estimated per-stream rate varies from $0.003 to $0.005. While this is slightly higher than SoundCloud’s per-play rate, Spotify’s payments depend heavily on having a large volume of streams, which can be challenging for independent artists.
Does SoundCloud Pay More than Spotify?
In terms of pure per-stream payouts, Spotify generally has a slightly higher rate. However, SoundCloud’s Fan-Powered Royalties model can be more beneficial for artists with a loyal fanbase who listen frequently. Here’s a comparison to illustrate:
|
Feature |
SoundCloud |
Spotify |
|
Payment Model |
Fan-Powered Royalties + Ad Revenue (Premier Program) |
Pooled Revenue System |
|
Estimated Pay Per Play |
$0.0025 – $0.004 |
$0.003 – $0.005 |
|
Best For |
Independent artists with a loyal, dedicated fanbase |
Artists aiming for high-volume, widespread reach |
|
Listener Payment Influence |
Directly impacts earnings |
Indirect impact via total streams |
|
Global Reach |
Extensive, with niche support |
Extensive, mainstream appeal |
Maximizing Plays on SoundCloud and Spotify
If you’re looking to build a following and boost your earnings, here are a few ways to make the most of both platforms:
- Building Fan Loyalty on SoundCloud: Engage with your listeners directly by responding to comments and sharing updates. Loyal fans are more likely to listen often, boosting your revenue through Fan-Powered Royalties. For a broader reach, you might consider services like Famety (ex – instafollowers) to increase your plays on SoundCloud and attract new listeners.
- Reaching a Broad Audience on Spotify: Since Spotify’s payouts favor high-volume streams, share your tracks on playlists and social media channels to reach more listeners. Spotify’s algorithm also rewards consistent releases, so keep your fans engaged by uploading new music regularly.
Final Takeaway: Which Platform Pays Better?
Ultimately, which platform “pays better” depends on your fanbase. If you have a smaller but highly engaged audience, SoundCloud’s Fan-Powered Royalties may lead to better payouts. However, if you’re aiming for mainstream exposure and high play counts, Spotify’s wider reach can work in your favor.
Both platforms have their strengths, so finding the right balance between them can help maximize your earnings and reach.
