Music has never been more accessible, but as a result artists are having to work harder to see revenue from their songs. Many of us use streaming platforms to play music, and income from online streaming is minimal. However, you can earn royalties from music streaming, and a tactical approach will increase your earning potential. If you’re releasing music independently, follow these tips.
Understanding how streaming royalties work
Royalties are payments made to the owner of a property, such as a song, for the rights to use that asset. There are two main types of UK music streaming royalties: publishing, for the songwriter(s), and recording, for the owner of the sound recordings.
Digital service providers (DSPs) like Spotify pay royalties to relevant parties based on the number of track plays over a period, using the remaining income after their share is deducted. This means that the more popular your music, the more you’ll earn. Their income comes mostly from paid subscriptions and ads.
Despite Spotify making headlines last year for paying out a record £7.7bn in royalties in 2024, the payout per stream is minimal, so you need to focus on growing your overall stream count to make it an effective means of earning money. Make sure you’re registered with the right collection agencies and distribution services to avoid missing out on publishing royalties. Understanding where your streams come from, and making sure every stream is tracked, will help you maximise income.
- Building your fanbase
With so much music being produced and uploaded to streaming platforms in the UK each year, it’s easy to get lost in the crowd. Building a dedicated fanbase to boost streams and improve the initial response to new tracks is key to bolstering your streaming income.
Focus on engaging directly with your audience through social media platforms, promoting your new music and live shows and responding to comments. Following other local bands in your genre and interacting with their pages is a great way to find new fans, who in turn will provide word-of-mouth promotion free of charge. All of this should drive more traffic to your streaming profiles.
Encourage fans to follow your DSP profiles, and like, share or add your tracks. Evidence of interaction could help you get ahead in the platform’s algorithm, leading to further plays and royalty payments. Visibility is key!
- Leveraging multiple platforms
Don’t limit yourself to one streaming service. It’s easy to focus on the industry giants like Spotify or Apple Music, but there are countless other platforms like Tidal, Amazon Music and YouTube that can contribute to your streaming income.
Uploading your music through as many services as possible will help you capture the widest audience, feeding into your fanbase in a healthy growth cycle. Working with a distributor is an effective way to push your music across multiple platforms with a single upload.
Some platforms, like YouTube, also offer additional monetisation options, such as ad revenue from music videos or the use of your tracks in user-generated content.
- Marketing and playlist promotion
You need to make a conscious effort to get your music in front of people. Digital marketing is most effective, from growing a social media following to sending e-newsletters to a fan mailing list. The best way to boost your streams is through placements in editorial and user-created playlists. Securing a spot on a popular playlist can dramatically increase your visibility, influencing a jump in streams.
Don’t overlook the value of organic marketing too. Putting up posters advertising gigs in venue windows, handing out flyers and getting outside and busking can be extremely effective methods of growing your presence in your local area. Building a well-optimised website and posting behind-the-scenes videos and exciting updates can help you rank more highly for associated web searches.
Consider longer-term projects such as cross-collaborations to ensure continued engagement and excitement and provide fresh material for fans to stream.
