How Many Music Streams Does it Take to Earn a Dollar?
A decade ago, the music industry was headed for a protracted fade-out.
The disruptive effects of peer-to-peer file sharing had slashed music revenues in half, casting serious doubts over the future of the industry.
Ringtones provided a brief earnings bump, but it was the growing popularity of premium streaming services that proved to be the savior of record labels and artists. For the first time since the mid-90s, the music industry saw back-to-back years of growth, and revenues grew a brisk 12% in 2018 – nearly reaching $10 billion. In short, people showed they were still willing to pay for music.
Although most forecasts show streaming services like Spotify and Apple Music contributing an increasingly large share of revenue going forward, recent data from The Trichordist reveals that these services pay out wildly different rates per stream.
Note: Due to the lack of publicly available data, calculating payouts from streaming services is not an exact science. This data set is based on revenue from an indie label with a ~150 album catalogue generating over 115 million streams.
Full Stream Ahead
One would expect streaming services to have fairly similar payout rates every time a track is played, but this is not the case. In reality, the streaming rates of major players in the market – which have very similar catalogs – are all over the map. Below is a full breakdown of how many streams it takes to earn a dollar on various platforms:
|Streaming service||Avg. payout per stream||# of streams to earn one dollar||# of streams to earn minimum wage*|
|Google Play Music||$0.00676||147||217,751|
*U.S. monthly minimum wage of $1,472 **Premium tier
Napster, once public enemy number one in the music business, has some of the most generous streaming rates in the industry. On the downside, the brand currently has a market share of less than 1%, so getting a high volume of plays on an album isn’t likely to happen for most artists.
On the flip side of the equation, YouTube has the highest number of plays per song, but the lowest payout per stream by far. It takes almost 1,500 plays to earn a single dollar on the Google-owned video platform.
Spotify, which is now the biggest player in the streaming market, is on the mid-to-low end of the compensation spectrum.
The Payment Pipeline
How do companies like Spotify calculate the amount paid out to license holders? Here’s a look at their payout process:
As this chart reveals, dollars earned from streaming still don’t tell the full story of how much artists receive at the end of the line. This amount is influenced by whether or not the performer has a record deal, and if other contributors have a stake in the recorded work.
The Pressure is Heating Up
When Spotify was a scrappy startup providing a much needed revenue stream to the music industry, labels were temporarily willing to accept lower streaming rates.
But now that Spotify is a public company, and tech giants like Apple and Amazon are in the picture, a growing chorus of industry players will likely dial up the pressure to increase compensation rates.
Ranked: Biggest Fast Food Chains in America
Every year, fast food chains rake in north of $200 billion in revenue per year. Here are the biggest chains, ranked by revenue and number of locations.
Ranked: The Biggest Fast Food Chains in America
Fast food is a supersized business in America.
The average American spends as much as $1,200 every year on fast food — and roughly a quarter of the U.S. population eats three or more fast food meals per week.
Today’s unique infographic, via TitleMax, shows just how dominant the quick serve food industry is, and which brands are leading the pack in terms of revenue and store locations.
All of the biggest fast food chains now top $1 billion in sales annually. McDonald’s leads the pack with almost triple the sales of the number two chain, Starbucks.
Below are the top 30 fast food chains in the United States by revenue:
|Rank||Chain||Sales (U.S., 2017)||# of Locations (U.S.)|
|18||Jack in the Box||$3.5B||2,251|
In 2017, the top 30 fast food chains rang up $172 billion in sales at over 140,000 locations across the United States. When smaller chains are also included, annual industry revenue tops a whopping $200 billion.
Fast food can be a profitable business, but certain chains are runaway successes when sales-per-unit are considered. Chick-fil-A’s sales average out to $4.3 million per location — 53% higher than McDonald’s, which brings in $2.8 million of sales per location.
Subway, which is known for having a low franchise fee and no exclusive territory rights, has the lowest sales-per-unit in the top 30 ($419,792).
That said, no one can compare to Subway in terms of sheer volume. The chain has over 25,000 locations, making it not only the biggest fast food chain in the country, but the most common retailer overall (even beating out dollar stores). It’s possible that America has seen peak Subway though — the number of locations has been steadily dropping since 2011.
On the opposite end of the spectrum is Starbucks. The Seattle-based coffee chain has been relentlessly expanding over the past decade.
Of course, not all fast food chains have the ubiquity of Subway and McDonald’s. Many of these brands have achieved impressive sales numbers in specific regions. Whether you’re loyal to Dunkin’ Donuts, Chick-fil-A, or In-N-Out may depend heavily on where you live.
Will America’s next big fast food powerhouse come from an already-strong regional chain, or will it be the result of a new phenomenon, completely?
Wired World: 35 Years of Submarine Cables in One Map
Watch the explosive growth of the global submarine cable network, and learn who’s funding the next generation of cables.
You could be reading this article from nearly anywhere in the world and there’s a good chance it loaded in mere seconds.
Long gone are the days when images would load pixel row by pixel row. Now, even high-quality video is instantly accessible from almost everywhere. How did the internet get so fast? Because it’s moving at the speed of light.
The Information Superhighway
The miracle of modern fiber optics can be traced to a single man, Narinder Singh Kapany. The young physicist was skeptical when his professors asserted that light ‘always travels in a straight line’. His explorations into the behavior of light eventually led to the creation of fiber optics—essentially, beaming light through a thin glass tube.
The next step to using fiber optics as a means of communication was lowering the cable’s attenuation rate. Throughout the 1960-70s, companies made gains in manufacturing, reducing the number of impurities and allowing light to cross great distances without a dramatic decrease in signal intensity.
By the mid-1980s, long distance fiber optic cables had finally reached the feasibility stage.
Crossing the Pond
The first intercontinental fiber optic cable was strung across the floor of the Atlantic Ocean in 1988. The cable—known as TAT-8*—was spearheaded by three companies; AT&T, France Télécom, and British Telecom. The cable was able to carry the equivalent of 40,000 telephone channels, a ten-fold increase over its galvanic predecessor, TAT-7.
Once the kinks of the new cable were worked out, the floodgates were open. During the course of the 1990s, many more cables hit the ocean floor. By the dawn of the new millennium, every populated continent on Earth was connected by fiber optic cables. The physical network of the internet was beginning to take shape.
As today’s video from ESRI shows, the early 2000s saw a boom in undersea cable development, reflecting the uptick in internet usage around globe. In 2001 alone, eight new cables connected North America and Europe.
From 2016-2020, over 100 new cables were laid with an estimated value of $14 billion. Now, even the most remote Polynesian islands have access to high-speed internet thanks to undersea cables.
*TAT-8 does not appear in the video above as it was retired in 2002.
The Shifting Nature of Cable Construction
Even though nearly every corner of the globe is now physically connected, the rate of cable construction is not slowing down.
This is due to the increasing capacity of new cables and our appetite for high-quality video content. New cables are so efficient that the majority of potential capacity along major cable routes will come from cables that are less than five years old.
Traditionally, a consortium of telecom companies or governments would fund cable construction, but tech companies are increasingly funding their own submarine cable networks.
Amazon, Microsoft and Google own close to 65% market share in cloud data storage, so it’s understandable that they’d want to control the physical means of transporting that data as well.
These three companies now own 63,605 miles of submarine cable. While laying cable is a costly endeavor, it’s necessary to meet surging demand—content providers’ share of data transmission skyrocketed from around 8% to nearly 40% over the past decade.
A Bright Future for Dark Fiber
At the same time, more aging cables will be taken offline. Even though signals are no longer traveling through this network of “dark fiber”, it’s still being put to productive use. It turns out that undersea telecom cables make a very effective seismic network, helping researchers study offshore earthquakes and the geologic structures on the ocean floor.
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