• Streaming dominates music, reshaping royalties and artist income worldwide
• Sub-Saharan Africa grows fast, but payouts stay far lower
• Platform, region, contracts widen gaps between top and niche artists

The music industry has undergone a major digital shift that has transformed its entire value chain. Recorded music is now the dominant way people listen, far surpassing physical formats such as CDs and vinyl, as well as paid downloads. Streaming now accounts for nearly 70% of the market, according to the Global Music Report 2025 published by the International Federation of the Phonographic Industry (IFPI).

This shift has also reshaped the way royalties are paid to artists whose work is streamed online.

“Digitisation is more than a technological change. It represents a deep transformation of the industry’s economic model and is creating new sources of income for artists,” said Davy Lessouga, a Cameroonian specialist in the digital transformation of cultural industries and music economics.

Sub-Saharan Africa recorded strong growth in music revenues in 2024, with recorded music income rising by 22.6% to a record $110 million. That growth rate was around five times the global average of 4.8%, the report said.

Yet in this new digital era, questions remain over whether artistic creation can be financially sustainable, as competition is intense and the digital divide continues to limit access for some groups.

Artist earnings depend on a combination of economic, contractual, geographic and technical factors. These variables help explain why some musicians earn far more than others on streaming platforms. Looking at payouts by platform, user profile, business model and country provides a clearer picture of the gaps.

The way royalties are calculated plays a central role in how platforms distribute revenue. According to the blog of digital music aggregator Deliver My Tune, the most common system is the “pro rata” model, under which payouts are based on total streams. This approach tends to favour the most popular artists, who capture a large share of overall listening volumes.

An alternative is the “user-centric” model, where each subscriber’s monthly fee is distributed only among the artists that individual user listens to. In theory, this system benefits niche artists more.

Revenue differences by region

Geography is another key determinant of streaming income, the same source noted. Regions with higher purchasing power, such as the United States, Western Europe and Scandinavia, generate more expensive subscriptions and stronger advertising revenues, leading to higher payouts per stream.

This contrasts with many African markets, where subscriptions are cheaper and streaming is often dominated by free, ad-supported listening. African artists therefore operate on a very different playing field from their counterparts in Europe or North America.

In an interview with CIO Mag, Lessouga pointed to Senegal, the only francophone country in Sub-Saharan Africa where YouTube monetisation is currently available. He said more than 10 million views generated just 971 euros for the music video Coup du marteau.

The song, a hit during the 2023 Africa Cup of Nations, was produced by the Ivorian-Senegalese-Cameroonian artist Tam Sir. The amount is roughly 697,000 CFA francs. Such revenues are significantly higher in other regions.

More paid subscriptions also generate more income per stream than free or ad-supported listening, which remains widespread in Africa. As a result, Spotify revenue per stream in many African countries is three to four times lower than in Europe or the United States, according to the estimates below.

Estimated revenue for 1,000,000 Spotify streams in 2024-2025 (indicative)

Source: Howtospotify.com

Subscription type

The listener’s subscription model also affects payouts. According to the educational platform Guitar & Music Institute (GMI), premium subscriptions remove advertising and generate higher revenue, while freemium models rely mainly on ads and tend to produce lower earnings for artists. Musicians whose audiences are largely premium subscribers typically earn more per stream.

Platform gaps for African artists

Payout rates also vary widely across platforms. Data published on the Nigerian market by the music distribution platform Viral Playlists Digital shows significant differences between services. Nigeria is among the most dynamic music markets on the continent.

Spotify pays relatively low royalties but remains a common benchmark. Apple Music pays around three times more per stream, while Amazon Music generates roughly double Apple’s payouts, close to six times Spotify’s level. However, Amazon Music remains less widely used in Africa.

Estimated royalties for Nigerian artists per 1,000 streams

Source: Viral Playlists Digital

It should also be noted that platforms do not pay artists directly. Payments go first to rightsholders, such as labels, distributors and publishers, and the final amount received by artists is often shared across several intermediaries.

The case of independent artists

Not all musicians operate under label or distributor contracts. Independent artists are expected to retain a larger share of revenues, but they are not necessarily protected from new licensing terms introduced by major platforms.

“Independents are being asked to sign contracts with Amazon based on thresholds that have a disproportionate impact on their artists and revenues,” said Helen Smith, executive president of Impala, the Independent Music Companies Association.

Some have reported that around 70% or more of their catalogue can be demonetised overnight.

Amazon Music argues that many independent artists and labels will see higher royalties under its new payment system. However, critics warn that the model, inspired by Spotify and Deezer, excludes or reduces payouts for tracks that fall below a minimum listening threshold, again favouring artists who are already widely streamed.

Ubrick F. Quenum