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LESSON 3 · How the Music Business Works

The Streaming Reality

Streaming platforms do not pay one fixed artist rate per play. Effective estimates often fall around $0.003 to $0.005 per stream before splits, so earning $1,000 from streaming alone can still require hundreds of thousands of plays.

The pro-rata model used by most platforms pools all subscription revenue and divides it by total streams. Your monthly fee primarily supports the most-streamed artists, even if you only listen to indie music. Some platforms are experimenting with user-centric payment where your fee goes only to artists you play.