Understanding the Value of 1,000 Streams: Insights from Duetti?s Report. A recent analysis by the catalog investment and lending platform Duetti seeks to clarify the monetary worth assigned to 1,000 streams of music in today’s streaming landscape.

The findings from the report, which was published on Thursday (Jan. 23), reveal that independent artists and owners of master recordings earned approximately $3.41 for every 1,000 streams globally in 2024. This figure provides a crucial perspective on how streaming revenue is distributed, particularly for emerging musicians navigating the complex digital music ecosystem.

Notably, this global payout has seen a decline from $4.04 per 1,000 streams in 2021. The comprehensive study analyzed data from major streaming platforms including Spotify, Apple Music, YouTube, Amazon Music, TIDAL, Qobuz, Deezer, SoundCloud, and Pandora, shedding light on the fluctuations in revenue across the industry as streaming habits evolve.

Among these services, Amazon Music stands out as the highest payer, offering $8.80 for every 1,000 streams in 2024. This premium rate highlights the competitive landscape in music streaming and the varying business models that different platforms adopt to attract both listeners and artists alike.

Despite the consistent decline in the payout per 1,000 streams since 2021, Duetti’s CEO Lior Tibon suggests that these rates may be stabilizing. He attributes this trend to the rising costs of streaming subscriptions, which in turn boost royalty payouts. The report also notes an increase in the share of overall artist earnings coming from YouTube, which has been identified as a more lucrative source compared to Spotify, although Spotify’s share for artists has decreased by 2%.

Duetti provides crucial financial backing for independent artists, trading capital for a share in their master recordings. The report indicates that Spotify’s Discovery Mode and its expanding reach outside the U.S. are significant factors contributing to the decline in payout rates. Although Spotify has raised subscription prices in various major markets, artists who enroll in Discovery Mode for increased algorithmic visibility often find themselves accepting lower royalty rates. This program has faced criticism from music industry groups and policymakers, who express concern over the pressures it places on artists to “pay to play.”

Spotify has yet to provide a response regarding these findings and the implications of its policies on artists? earnings.

According to Tibon, the growth rate from Discovery Mode?s contribution to the overall streams for independent artists is beginning to plateau. This suggests that the effects of this program on payout rates are stabilizing rather than continuing to decline sharply.

?We are now at a juncture where the increase is not likely to continue at the same pace as observed in previous years. Furthermore, the growth of YouTube is serving as a counterbalance to the impact of Spotify?s growth outside the U.S. and the rise of discount subscription plans,? Tibon elaborates.

Certain music subgenres, particularly hyperpop, are experiencing slightly elevated royalty payouts ? with figures reaching up to 30 cents more per 1,000 streams compared to mainstream genres. This increase can be attributed to the lower enrollment rates of artists in Discovery Mode within these niche genres, according to the study?s results.

Comparing Streaming Service Payouts

The report highlights that Amazon Music leads the streaming service market by offering the highest royalty rate at $8.80 per 1,000 streams. This premium is likely influenced by the bundling of Amazon Music with a Prime membership, which costs $139 annually, providing significant value to subscribers.

Following Amazon, TIDAL ranks second with a payout of $6.80 per 1,000 streams, while Apple Music offers $6.20 per 1,000 streams. This discrepancy can be attributed to Apple Music’s strong presence in higher-priced markets and the absence of ad-supported subscription tiers, as indicated in the report.

While YouTube’s payout rates can vary considerably for different artists, the report reveals that on average, independent artists earned approximately $4.80 per 1,000 streams in 2024 from the video streaming giant. This statistic underscores the platform’s evolving role in the music industry and its potential as a revenue source for artists.

In contrast, Spotify’s payout remains around $3 per 1,000 streams. This figure is influenced by a combination of high user engagement, a diverse geographical user base, reliance on discounted and free subscription models, and the implications of its Discovery Mode program, as elaborated in the report.

Interestingly, the report challenges the prevalent belief that viral success on TikTok leads to consistently higher royalty payouts, finding that this correlation only holds true 15% of the time.

Amazon, TIDAL, and YouTube have not yet responded to inquiries regarding these findings and their positions within the music streaming market.

TikTok has previously asserted that it plays a significant role in helping artists gain exposure, claiming that a remarkable 84% of songs that made it to the Billboard Global 200 in 2024 initially became popular through viral trends on its platform.

Understanding Catalog Valuations in the Music Industry

Established in 2022, Duetti is a pioneering catalog investment company that offers independent artists access to financial resources ranging from $10,000 to $3 million. This funding is exchanged for a share in their master recordings, enabling artists to monetize their work while maintaining creative control. The data utilized by Duetti to assess the value of artists’ catalogs encompasses various metrics, including royalty statements, streaming performance, and other analytical insights, which inform the conclusions drawn in the report.

Duetti collaborates with over 500 artists, including notable figures such as Shayne Orok, renowned for his Japanese adaptations of popular songs, and Adán Cruz, a celebrated Mexican rapper and songwriter. Their partnership aims to enhance the digital promotion of their works, leveraging Duetti?s expansive network of YouTube channels to reach broader audiences.

?YouTube has been instrumental in my career, allowing me to establish a direct connection with my fanbase and sustain my livelihood through my passion,? Orok stated in a testimonial for Duetti. ?Collaborating with Duetti has significantly amplified my reach, enabling my music to find new listeners in ways I could never achieve independently.?