According to thefader.com, Billboard has created a royalty calculator for the streaming services Spotify and Apple Music. The payout is going to be calculated on the subscriber fees that the digital streaming provider pays as well as the number of streams. The calculator will be updated on a monthly basis with a three month due balance.
All of the users need to enter the number of streams of an album or song and the calculator will tell them the total payout for that figure number of streams, which is the sound recording payout to the copyright owner, mechanical royalties paid to the music publisher, and performance royalties paid to performance rights organizations including ASCAP, BMI, GMR, and SESAC.
According to Billboard, Apple Music will have higher play rate than Spotify but Spotify still pays out more due to their bigger user base. Spotify also paid labels and publishers $1.84 billion to Apple Music’s $1.68 billion in the first six months of this year. Spotify has lower play rate because they have twice as many plays as Apple Music‘s platform.
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