Photo Credit: Peloton
The streaming platform that pays the most to artists isn’t Spotify or Apple Music—it’s Peloton. Good luck getting the same volume as major DSPs, but the per stream payout rate means even indie artists see more cash in their royalty payments from the exercise company.
Digital Music News has tracked what digital service providers (DSPs) pay out per stream for several years now. Peloton’s estimated per-stream royalty rate back in 2021 was 3.1 cents, which far surpasses the fractions of a penny paid-out by Spotify (0.35), Apple Music (0.68), YouTube (0.15), and Tidal (0.88). While Peloton isn’t a significant part of the digital streaming music economy, the payout rate is undeniably above major DSPs.
Indie artist Steven Cravis reached out to Digital Music News to share his experience with Peloton’s rates after receiving his royalty payment from Tunecore. “I got paid $1,078.46 for 26,456 streams on Peloton,” Cravis tells DMN. Quick math ($1,078.46/26,456) says Cravis earned $0.0407 cents per stream—higher than the rate we reported in 2021.
Cravis says he researched the payment and discovered that all 26,000+ streams were for one song called “Dark Crystal” created under the artist AKA Happy Halloween Music. The track specifically featured on a Halloween-themed Peloton cycling class playlist, which also included tracks like “I Put A Spell On You (Floorplan Remix)” and other songs from the Beetlejuice soundtrack.
Cravis tells DMN that the artist Happy Halloween Music didn’t make the cut for Spotify’s yearly spin requirements. “Spotify has been paying me $0 for this artists AKA’s music since January 2024,” Cravis says. Peloton’s feature of his playlist earned him over $1,000 for the month of October as exercisers tuned in to get into the spirit. Anyone in the Halloween spirit on Spotify shared exactly $0.00 with Cravis—even if they enjoyed the track.
Spotify’s change to how royalty payments are made were intended to prevent fraudulent streams from cutting into the royalty pool. But bad faith actors are always going to game the rules. Spotify’s new rules require tracks to earn at least 1,000 streams in a 12 month period before the artist is eligible to receive royalties from Spotify. Cravis provides an example where a legitimate artist has had his royalties reduced to $0 from Spotify’s change.