Independent artists need to hit 5 million streams to make minimum wage

Ever since Napster debuted in the late 90s, upsetting the status quo of how artists earn money from their work, there has been a struggle of technology vs. payouts in the music industry. Now a new study reveals just how many streams an artist needs to reach to earn minimum wage as an independent entity.

According to the 2023 Music Economics Report for Independent Artists revealed by the music platform Duetti, independent artists are having a harder time than ever making a living off of their art and productions. According to the study, artists need to attain 5 million streams on platforms to have a chance to earn minimum wage as an artist. The report details how independent artists receive $2.95 for every 1,000 streams they receive on popular platforms.

The evolution of earnings in music has been a hot topic of conversation, as many major artists are selling their catalogs outright for tens of millions of dollars, looking to cash in now and be able to share the wealth with their future generations, while new artists look to adapt to the times. Beyond the decline in physical media, platforms like Spotify are also changing their price models, looking to engage more lower-priced tier plans to onboard users. This new model has had a direct impact on the artists who provide content to the platform, revealing a two percent decrease in payouts in 2023.

The struggle to earn a living as an artist is further marred by the recent announcement that Spotify CEO Paul Vogel will step down from the company next year, just 24 hours after cashing out his shares in the company for over $9 million. While every streaming platform pays out differently based on their own agreed-upon rates, the journey to earning a living as an independent artist seems more uphill than ever.