When it comes to earnings from streaming services, it really varies from store to store. At Rapchat Distro, we're committed to transparency and ensuring you receive 100% of the earnings from your streams and sales, minus any fees and taxes required. 🌟
Streaming services calculate royalties based on several factors, and these calculations can differ from one service to another. Here are some key elements that affect your earnings:
Quantity of Streams/Downloads: The number of times your song is streamed or downloaded plays a significant role.
Territory: Earnings can vary depending on the geographical location of the streams.
Subscription Type: There's a difference in earnings between free and paid subscriptions.
Ad/Subscription Revenue: The overall revenue generated by the service through ads and subscriptions also influences your earnings.
See how popular streaming platforms calculate your royalties:
The Pro Rata Model
Most streaming services use the pro rata model to distribute earnings. Here’s a simplified breakdown of how it works:
Revenue Pooling: All the revenue from a specific tier (like a paid subscription tier) is pooled together.
Artist Share: A percentage of this pooled revenue is allocated for artists.
Distribution Based on Streams: The revenue set aside for artists is then divided among songs based on their proportion of total streams in that tier.
Example:
Suppose a service has $1,000 to distribute from its paid subscription tier, which accumulated 10 million streams in a month.
If your song was streamed 1,500 times, the calculation would be: 1,500/10,000,000 * $1,000 = $0.15 owed to you.
Sales vs Streams
For platforms that offer digital downloads, the industry-standard typically involves the service keeping up to 30% of each sale, with the remaining 70% going to the artist. This differs from streaming, where earnings are based on the number of streams and the factors mentioned above.
How long does it take the Stores to report royalties?
Most Stores have a lag of 60 to 90 Days between when streams are played/sold and when they are reported and paid out to Rapchat.
In general:
Apple, YouTube: 2 months (you would be paid in March for January)
Amazon: varies between 2-3 months
All other DSPs: 3 months (and in some cases, the smaller DSPs can take much longer as they can run into reporting issues)
How do I get my royalties?
See this article: How do I get my streaming royalties?
Need Help?
If you have any questions about how royalties work or need assistance with anything related to Rapchat Distro, please don't hesitate to reach out to our support team!
Remember, every stream counts, and your music has the power to reach audiences far and wide. Keep creating, keep sharing, and let's continue this amazing journey together! 🎶💫