In an industry frequently criticised for its lack of transparency, Qobuz is the first streaming platform to have its average payout rate per stream officially validated. This groundbreaking initiative reinforces its position as a fairer and more sustainable model for the music industry.

Since its inception, Qobuz has been dedicated to promoting sustainable, quality music creation. In an unprecedented move towards transparency in the music industry, the platform has published its average royalty rate per stream, which was reviewed by a leading international firm.

Qobuz distributed royalties to labels and publishers, amounting to an average of US$0.01873 per stream for the fiscal year 2024. To put this into perspective, if a track reaches 1,000 plays on Qobuz, it generates US$18.73 for these rights holders, who then pay artists, songwriters, and composers according to their contractual agreements.

Regarding average revenue per user (ARPU), Qobuz generated an annual average revenue of US$121.13, while the market average is only US$22.38 annually. This means that Qobuz, on average, produces five times more revenue per user than the market average, significantly benefiting artists' remuneration.

Qobuz states that it supports artists in several key ways. Firstly, the lack of a free ad-supported tier ensures higher compensation for all involved in music creation. This also provides access to uncompressed (lossless) and high-resolution (Hi-Res) audio quality, including DSD and DXD formats, and exclusive editorial content. This premium positioning ensures fairer payouts for artists and makes it a more attractive proposition for music fans. Additionally, Qobuz's online store allows users (not limited to streaming subscribers) to purchase Hi-Res and CD-quality albums, providing rights holders with direct and higher compensation. We are told that this model complements streaming revenue and is essential for supporting music outside mainstream hits, as over 51% of downloads on Qobuz come from genres such as rock, classical, and jazz.

Moreover, Qobuz features artists and genres often underrepresented in the 'mainstream', such as jazz and classical music. The service says that the editors' selections, playlists, and awards give greater visibility to a more eclectic range of artists, allowing lesser-known releases to attract more streams and generate more revenue for a broader spectrum of musicians.

It is important to note that Qobuz, like other streaming platforms, does not directly pay artists. Following industry practices, about 70% of the revenues generated are paid to rights holders (labels, publishers, distributors, and collective management organisations), who compensate artists, publishers, composers, and authors according to their agreements.

Georges Fornay, Deputy CEO at Qobuz, told StereoNET:

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 towards greater transparency. Our payout rates are now public. This unprecedented move in our industry is a necessary first step towards 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.

It is excellent to see Qobuz leading the charge as one of the primary streaming services. We also remember how the French-based streaming platform donated 100% of its revenue to support artists unable to tour during the lockdown. These published figures and Presto Music's Fair Play pay-per-second model show there is a move to pay artists via their labels, publishers, etc., a better rate by some organisations at least.

Is it perfect? Not quite, but the alternative to such initiatives for artists is AI-generated music or worse. While many people support artists by attending live performances, many live acts have to deal with venues closing or them demanding a percentage of the act's merchandise and ticket sales. There is also little support from labels which used to be able to offer 'development deals'. Instead, artists at the grassroots level are expected to self-fund and grow an audience themselves. While some will say it is easier now because of social media and modern technology, this has also made it more competitive as everyone is now competing on a global stage rather than locally or nationally.

Nobody is owed a career, this is true, but imagine your day without music. Whether it's on your hi-fi or through headphones, generating an atmosphere in movie soundtracks, incidental music on your favourite show, complementing a visit to a restaurant or during a road trip, all this exists because of musicians and songwriters.

Visit Qobuz for more information