In a groundbreaking move for the music streaming industry, Paris-based Qobuz has publicly unveiled the detailed per-stream royalty rates it allocates to rights holders. According to a statement given to Billboard, Qobuz disclosed that it paid an average per-stream royalty rate of $0.018732, equating to 1.8782 cents, during the 12 months ending March 31, 2024. This all-inclusive rate, which encompasses both recorded music and publishing rights, translates to approximately $18.73 for every 1,000 streams, setting a new standard for transparency in the industry.
“Today, we are taking this step for greater transparency,” stated Qobuz deputy CEO Georges Fornay. “Our payout rates are now public. This unprecedented move in our industry is a necessary first step toward promoting a fairer and more sustainable streaming model. Choosing Qobuz means taking concrete action for fairer compensation for all artists and supporting musical diversity, values that our customers cherish.” This statement underscores Qobuz’s commitment to equitable financial practices in the streaming ecosystem, an approach that resonates with both artists and listeners who value transparency.
One of the primary reasons many streaming services have refrained from disclosing their per-stream royalty rates is due to the complex nature of how royalties are calculated. These calculations are influenced by a multitude of factors, including market share dynamics and guaranteed minimum payments. Qobuz acknowledges this complexity in its press release, which notes that the methodology behind payments to labels and publishers is not uniformly based on a per-stream remuneration model. “It should be noted that the methods of payment to labels and publishers are not systematically based on remuneration per stream,” the release states, further clarifying that “calculation methods may vary from one contract to another.” This sophistication in payouts highlights the challenges in comparing different streaming services.
Despite the intricacies of royalty calculations, the per-stream royalty rate has emerged as a critical metric for evaluating the value that streaming services provide to artists and rights holders. While Qobuz is often recognized as a platform with one of the highest per-stream rates, official data to confirm its standing within the royalty hierarchy has been scarce. Historically, companies have disclosed aggregate royalty amounts paid annually or cumulatively, but this marks the first instance of a company providing insights on a per-stream basis, thereby enhancing the discourse on fair compensation in the digital music landscape.
With a per-stream royalty rate of approximately $0.0187, Qobuz stands out significantly compared to its competitors, based on the limited and often imperfect information available. Notable comparisons can be drawn from music catalog investor Duetti, which published its own calculations for per-stream rates for independent artists in January. According to that report, the average royalty for master recordings—excluding the publishing component that Qobuz included—was just $0.00341 per stream in 2024, although Qobuz was not part of those rankings. Given that publishing typically accounts for about 20% of music streaming content costs, this suggests that Qobuz’s recorded music per-stream royalty could be around $0.015, a remarkable 4.4 times higher than the average reported by Duetti.
On Duetti’s list, Amazon topped the rankings with a per-stream payout of $0.0088, followed by TIDAL at $0.0068, Apple Music at $0.0062, and YouTube at $0.0048. In contrast, Spotify’s per-stream payout stands at just $0.003, which is notably lower than its competitors. This discrepancy is attributed to various factors, including high user engagement, geographical distribution, reliance on free and discounted subscription plans, and features like Discovery Mode, where artists opt for lower royalties in exchange for promotional visibility within the app.
One of the factors contributing to Qobuz’s relatively high payments is its pricing strategy. The average revenue per user (ARPU) at Qobuz is approximately $121.13 annually or $22.38 monthly. In contrast, Spotify’s latest ARPU (for the quarter ending December 31, 2024) was reported at just 4.85 euros (approximately $5.29). In the U.S. market, Qobuz charges $12.99 per month, which is b more than Spotify’s music-and-audiobook tier. For its home market in France, Qobuz’s monthly rate is set at 14.99 euros (around $16.35), or 149.99 euros (approximately $163.55) annually, representing a 34% premium over Spotify’s monthly charge of 11.12 euros (around $12.13).
Qobuz has cited various other aspects of its business model that contribute to its comparatively high royalty rates. Notably, Qobuz does not offer an ad-supported tier, which typically pays lower royalties compared to subscription plans. Additionally, the platform delivers significant value through high-resolution audio and uncompressed files, complemented by exclusive editorial content, which the company believes justifies a higher pricing structure. Furthermore, Qobuz emphasizes genres and artists—such as jazz and classical music—that are often underrepresented on other streaming platforms, arguing that this approach leads to increased revenue for a broader array of artists.
The geographical presence of Qobuz also significantly influences its royalty payouts. In the 26 markets where Qobuz operates—including the U.S., Japan, U.K., Germany, France, Sweden, and Canada—consumers generally demonstrate a willingness to invest in music subscriptions. Conversely, the service isn’t available in many emerging markets like India, where subscription prices are low, and listeners predominantly favor free, ad-supported options. While Qobuz does operate in countries like Mexico and Brazil, its pricing remains higher than that of competitors. For instance, in Mexico, Qobuz’s monthly fee is 150 pesos (approximately $7.49), compared to Spotify’s 129 pesos (about $6.44), and in Brazil, Qobuz costs R$25.90 (around $4.59), while Spotify charges R$21.90 (approximately $3.88).
The disparity between Qobuz and its competitors in terms of royalty payouts may lessen in the future as royalty rates gradually improve. Reports indicate that Spotify is considering launching a higher-priced plan that would include high-quality audio, reflecting a broader industry trend toward enhancing streaming services. Furthermore, various companies are implementing measures aimed at modestly increasing payouts. For example, Deezer has restructured its royalty distribution model to prioritize professional artists, demoting AI-generated tracks and removing so-called “non-artist noise content.” Spotify also revised its royalty payout structure in 2023. As more platforms adopt similar practices, it is anticipated that average royalty rates will experience a gradual upward trajectory.
