Snoop Dogg‘s recent claim in “Business Untitled” podcast of earning a mere $45,000 from a billion Spotify streams sent shockwaves through the music industry. This figure is significantly lower than many expected, considering his immense popularity. It reignites the debate about the fairness of streaming service payouts to artists, raising questions about the opaque nature of royalty structures.
“I’m taking 60% because I’m putting it out for you, you are getting 40%,” Snoop said. “That may sound like a lot, but you just made $100,000.”
Snoop Dogg reveals how much he was paid for getting 1B streams on Spotify PIC.TWITTER.COM/ENVHKUFUZ2
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While the estimated payout per stream for services like Spotify is around $0.003, the amount artists receive can vary greatly. Factors like record label deals, distribution agreements, and songwriter splits play a role. In Snoop Dogg‘s case, owning Death Row Records might grant him a different revenue share than other artists.
The streaming era offers artists unprecedented global reach, a stark contrast to the limitations of traditional album sales. However, lower per-stream payouts necessitate a strategic approach. Many artists leverage touring, merchandise, and brand partnerships to supplement their income, creating a multifaceted revenue stream.
”Let me tell you the thing that worked with me; it was simple and transparent,” Snoop Dogg said on the podcast. “That’s what the music and film industries don’t have, so this was a way to show transparency. Could you give me a song? I’m taking 60% because I’m putting it out for you, and you are getting 40%. That may sound like a lot, but you just made.”
Snoop Dogg‘s experience highlights the need for more transparency in artist compensation—initiatives like Spotify’s proposed 1,000-stream minimum for royalty eligibility aim to address some concerns. As the industry navigates this complex landscape, balancing platform accessibility and fair artist compensation remains paramount.
As previously reported by AFROTECH, Snoop Dogg, who took ownership of Death Row Records in February 2022, made a profit of $40 million. This was achieved by pulling the label’s music from streaming platforms and exclusively offering it in the metaverse.
“My son, he the one who spooned me and groomed me to this,” Snoop Dogg told “Business Untitled.” “In the beginning, it was a bunch of other–kers just using my name, my face, and just doing all kind of sh-t…and he called me, he said, ‘Pops, it’s what you can’t do. You can’t be mad because they love you if they use your face and likeness. They don’t know how they get in touch with you. So what you should do is reach out to them and say thanks or good looking out, or do you want to collaborate?'”
“So it was like my son who had to adjust my attitude on this ain’t a money grab, this is a relationship, and I think that’s why we won.”
The debate is likely to continue as streaming becomes increasingly popular. In 2020, the global music industry generated $21.6 billion in revenue, with streaming accounting for 62.1%.
“In the streaming world, I can show you right now. They just sent me some sh-t from Spotify, where I got a billion streams, right? My publisher hit me. I said, ‘Break that down; how much money is that?’ That sh-t wasn’t even $45,000… Do you see what I’m saying? So it’s like…when this sh-t came out, I could tell an artist that same song you put out traditionally that didn’t make any money, give it to me. Every time you sell it, you get 10% of it if somebody else sells it.”
It is clear that streaming is a significant force in the music industry, but it is also clear that there are still some issues that need to be addressed. One of those issues is the fairness of streaming payouts. Artists must be paid fairly for their work, and streaming services must find a way to make that happen.
