The Streaming Divide: Why Pop Superstars Earn Millions While Most Musicians Struggle to Survive
- Paul Francis

- 1d
- 4 min read
For millions of music fans, every song is just a click away. Streaming platforms such as Spotify, Apple Music and their competitors now generate billions of dollars in annual payouts. Yet for many artists, the income is barely enough to live on. Meanwhile, a small group of global superstars enjoy platform-shattering success and headline tours that gross tens of millions.

What is driving this gap? And how does it affect the new generation of musicians trying to build careers from their craft?
The Vast Payouts, But Not for Everyone
In 2024, Spotify revealed that it had paid out more than US$10 billion in royalties to the music industry. On the surface, this appears to be a thriving ecosystem. However, the distribution of that money tells a very different story.
According to independent data, artists who own their masters earned an average of US$3.41 per 1,000 streams globally in 2024, down from around US$4.04 in 2021. That is equal to about US $0.0034 per stream. If an artist earns 100,000 streams in a month, they might make only US$340.
Streaming services typically use what is called a pro-rata payment model. Revenue is pooled together and divided according to each artist’s percentage of total streams. In practice, this benefits major artists with the biggest catalogues, label backing and playlist exposure. Smaller acts receive only a fraction.
The Top Three Per Cent Take the Prize
The upper tier of the music world is thriving. Large-scale artists, major labels and streaming megastars command huge global audiences and, as a result, absorb the majority of the payouts. Spotify’s disclosures show that only a very small number of artists earn six-figure sums, and even fewer reach seven or eight figures.
These artists also benefit from multiple income streams, including live tours, merchandise, brand sponsorships and sync licensing. For them, streaming is only one part of a much larger financial picture.
In contrast, mid-tier and independent artists face an entirely different reality: low streaming income, high touring costs and fierce competition for attention.
Touring: The Lost Income Stream
Touring has long been the lifeblood of working musicians. It provides not only income but also exposure and connection with fans. Yet the economics of touring have changed dramatically.
Frontwoman Shirley Manson of the band Garbage has been one of the most vocal critics of the modern music economy. During the band’s 2025 North American tour, she stated that Garbage would no longer attempt full-scale headline tours in the region because the costs had become impossible to sustain for “a band like us with a 30-year career.”
She pointed out that the average musician makes about US$12 a month from streaming. Rising fuel costs, staff wages, travel expenses, insurance and venue fees make touring a financial risk even for acts with decades of experience.
If an established band like Garbage cannot justify a tour, the situation for emerging artists is even more difficult.
Why It Is So Hard for New Artists
1. Algorithms and Exposure
Streaming platforms depend heavily on algorithmic curation and official playlists. These are dominated by major-label artists and global hits. For newcomers, breaking into these lists is extremely difficult without marketing support or label funding.
2. Low Payouts Per Stream
With an average of only a few thousandths of a dollar per play, musicians need millions of streams to earn a modest income. Many independent acts never reach those numbers, particularly if they are working in niche genres.
3. Touring Costs
Live performances require significant investment: travel, crew, accommodation, equipment, promotion and management. When streaming revenue cannot cover those costs, artists often face a choice between going into debt or not performing at all.
4. Limited Alternative Income
Other income streams, such as merchandise, fan subscriptions and brand partnerships, require upfront investment and constant marketing. The modern artist must act as a full-time entrepreneur, not just a creator.
5. Lack of Collective Representation
The power in the industry still rests with major labels, streaming platforms and live promoters. Musicians have little collective bargaining power. Shirley Manson has said, “There’s no effective union for musicians that fights for young musicians,” highlighting how vulnerable creators are in the system.
Reforms That Could Help
Many artists and advocates are calling for reforms to make the industry fairer:
User-centric payment models: Each listener’s subscription fee would be divided only among the artists they actually play, instead of being pooled across the entire platform.
Transparent royalties: Artists are demanding clear information on how streaming payouts are calculated and divided.
Touring support: Some suggest public or private funding to help mid-tier artists continue performing live.
Union representation: A stronger collective voice could help secure fairer contracts and protect creative rights.
Diverse income sources: Encouraging direct fan funding, independent distribution, live streaming, and non-traditional deals can help artists stay independent.
The Reality of the Numbers
To put it in perspective: at US $3.41 per 1,000 streams, an artist would need nearly 300,000 monthly plays to make US $1,000. This does not include taxes, label cuts or management fees.
Meanwhile, top artists such as Taylor Swift, Drake and Ed Sheeran receive hundreds of millions of plays per month and can negotiate higher royalty splits through their labels. The gap between these global names and working musicians continues to widen every year.
The Future of Music
The digital era has made it easier than ever to release songs, but far harder to make a living from them. For many, the dream of a sustainable music career now feels out of reach.
As Shirley Manson warned, when only the most commercial voices can afford to continue, “you’ll lose generations of esoteric, creative weirdos.” The danger is not only economic but cultural. A world without risk-taking, diverse music is one that loses its heartbeat.
If the industry wants to stay vibrant, it must find a way to support artists beyond the top three per cent. Because innovation, authenticity and emotional connection often come from the middle — not the mainstream.





