It’s easy to get lost trying to calculate exact numbers, but we can use some common sense. As we mentioned above, Spotify pays $0.0079 per stream if the user hits the play button more than 20 times. If you hit the play button once and then hit the next button 20 times, then Spotify will give you $0.0078. If the user hits the play button once, but a single or double, Spotify will give you $0.0010, or $1.837.
But how much does Spotify pay for 1 million total plays? Let’s look at what this is worth.
The above numbers are the average numbers per stream that you can expect to hit the play button when you’re using the Spotify platform. These averages are pretty close to each other. So what can Spotify actually pay people for Spotify plays? We can estimate if Spotify is paying out a certain amount that people are getting paid to stream Spotify songs.
So what’s the money paying out for 1 million streams? Well you know what 1 million streams is? That is 1 million streams in a row.
To get this number, let’s just take the average number of 1 million streams per second. This is something like 1.5 million in one minute. That means 1 million streams per hour for just 40-hr. At a rate of 40 Hz per stream, you’re only going to get paid for 40 streams per hour.
If you keep at that pace, there might be about 3 days per month where you’ll receive enough money to not be a paying customer for a month. What do you think you’re worth then for one year then? And of course you’ll probably get paid for one year at 2x that rate (40x 40/hr x 30 days in a month).
So if you think you’re worth $0.0079 per stream, then you’re likely going to be worth $10,080 per year for 1 million streams.
Is it worth $10,080?
The Spotify price per stream is going to be so expensive (and so rare) that it’s going to be almost impossible for people to get a reliable way of calculating how much a stream is worth. People will need to do this by looking at a formula, which is much more prone to error.
But what if you had a formula that said “Let’s assume you get paid $80,000 for 1 million streams”. Then you could calculate
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