Qobuz, the platform for high-resolution music streaming and purchasing, has shared the results of an independent review into its average royalty payout per stream.
The platform is the first of its kind to have its average payout rate per stream officially validated, which it says forms part of its “commitment to fairer compensation for artists”. The review reveals that on average, it pays five times more revenue per user than the market average.
In the 2024 fiscal year, Qobuz paid an average of US $0.01873 per stream to labels and publishers. As a press release from the brand clarifies that if a track reaches 1,000 plays on Qobuz, this represents US $18.73 paid to these rights holders, who then pay out to the artists, songwriters and composers, according to the terms of their contracts.
In terms of average revenue per user (ARPU), Qobuz generated an average revenue of US $121.13 per year, where the market average is US $22.38 per year. The platform offers alternative approaches to streaming compared to its industry competitors, by offering an exclusive paid model only (no ad-free tier) to ensure higher compensation, for example.
Qobuz also offers access to uncompressed (lossless) and high-resolution audio quality to justify its premium positioning, and also has a download store where users (not limited to streaming subscribers) can buy albums in Hi-Res and CD quality.
Georges Fornay, Deputy CEO at Qobuz, comments, “Although numerous reports highlight our payout rates as among the highest in the industry, no streaming service had officially disclosed its rates until now. Today, we are taking this step for greater transparency.
“Our payout rates are now public. This unprecedented move in our industry is a necessary first step toward promoting a fairer and more sustainable streaming model. Choosing Qobuz means taking concrete action for fairer compensation for all artists and supporting musical diversity, values that our customers cherish.”
Find out more via the official Qobuz website.
