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David Harrell is a musician in the indie rock band the Layaways which has self-released four albums. He reports that Beats Music payed out an average of 1.801 cents per stream from his December 2014 CD Baby account. His graph below shows the difference between the current Beats Music payout and average Spotify payouts (0.428 cents) for the last few years.

the Layaways payouts

It is not surprising Beats Music is a higher rate. Spotify averages two tiers of users — paying subscribers (high rate) and free users (low rate paid by advertising). Spotify’s average payouts will naturally be lower than Beats Music which has no free version to factor in. All payments from Beats are based on paying subscribers (a high rate).

The real question is volume.. does Spotify make up the smaller revenue per stream with a higher amount of listens? People guess Beats Music has a few 100,000 subscribers at best while Spotify has 15 million premium subscribers… In this case, more people for less money is much better.

via: Beats Music Beats Spotify

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