Exploring Why Musicians Choose Spotify despite Lower Payouts

Rahul Maheshwari
4 min readAug 15, 2023
Image Credits IGroove

In the world of online music streaming, Spotify remains at the top as always. People frequently complain about its prices and how expensive it is, yet they still love using it, even with the free version and ads. If Spotify pays less than the competition, why do artists still let them use their music? Now, the question arises: why? This is all due to the quality that Spotify delivers and maintains. On this platform, there are very few chances that you can’t find a particular song or podcast because the Spotify library has everything together in one place, while other platforms lack many albums and some of your favorite audio tracks.

Most regular listeners choose Spotify over other platforms because of its wide library. But, why do all the artists choose it even when Spotify earnings are lesser than other music streaming platforms? The answer isn’t simple and involves factors ranging from exposure and convenience to the intricate workings of the music industry.

Read also: How to Add YouTube Songs to Spotify Mobile

Reasons why Artists prefer Spotify over any other music streaming platform:

  1. Strategic Marketing Tool: Artists view Spotify as a strategic marketing tool rather than a direct income source. They might receive lower payouts on Spotify, but they can still showcase their talent to a wider audience. The exposure gained here can lead to recognition, an engaged fan base, and opportunities for live performances, merchandise sales, and licensing deals. Artists use Spotify as a launchpad to connect with fans on platforms like TikTok, Instagram, and Facebook.
  2. Accessibility and Convenience: Independent artists lack connections and opportunities to showcase their talent. Platforms like Spotify, with a user-friendly interface and streamlined distribution process, provide a hassle-free way to share music globally. Despite lower Spotify payment, the convenience of reaching a massive audience quickly is enticing, especially for artists with limited resources.
  3. Labels and Ownership: Artists don’t always make decisions about uploading music to Spotify. These decisions sometimes lie with master owners or investors in the record label. While per-stream royalties might seem low, other factors like label agreements and cost recovery are important. Spotify’s revenue distribution model involves sharing revenue with songwriters, master owners, and the platform.
  4. Exposure and Discovery: Spotify’s algorithm-driven playlists and curated selections play a significant role in the success of new songs. Being featured in a popular playlist can change the game for new artists, boosting their profile and visibility. Even though Spotify payment is lower than other platforms, this platform still allows newcomers to showcase their talent and get discovered by people all over the world.
  1. Mixed Revenue Streams: Spotify earnings aren’t always substantial for artists. Some prefer income from various sources, including YouTube. On YouTube, artists earn from streaming and ads. Multiple revenue sources create a more stable income.
  2. Support for Lesser-known Works: Spotify enables artists to feature all their songs, including lesser-known ones that don’t generate much revenue. This freedom allows artists to connect with specific groups of listeners and their most dedicated fans. Through this strategy, artists sometimes receive engagement on an old song that had failed long ago. This is why people say that a single piece of viral content can enhance the recognition of all your previous work and your profile.

Artists continue to use Spotify because it helps them reach a wider audience on a single platform and serves as self-promotion. Spotify provides artists with detailed insights into their listener and follower data, helping them improve their work. Even as the music industry changes, Spotify remains crucial for artists to connect with fans worldwide.

On Spotify, artists have their own pages and can create playlists and special content to connect with fans. Even though they might not earn a lot of money directly from streaming, being on Spotify helps them get noticed and can lead to more ways of making money and build a strong fan base. To do well, artists should use Spotify along with social media, live shows, selling merchandise, and talking directly with fans. This mix of things can help them succeed.

This article was originally posted on The SocioBlend Blog

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Rahul Maheshwari

Digital Marketer at SocioBlend | Football Maniac | Value Investor | Petrol Head | Plantsman