Peloton Pays More to Artists Than Spotify, Apple Music, and YouTube Combined

When it comes to per-stream payouts, Peloton is emerging as an unexpected leader in the music streaming world, outpacing giants like Spotify, Apple Music, and YouTube. While Peloton isn’t a mainstream player in the digital music streaming industry, its royalty rates offer indie artists a much better deal.

According to Digital Music News, Peloton’s per-stream payout rate in 2021 was an impressive 3.1 cents. This far surpasses the meager payouts of Spotify (0.35 cents), Apple Music (0.68 cents), YouTube (0.15 cents), and Tidal (0.88 cents).

Although Peloton doesn’t boast the same volume of streams as these major platforms, its more generous payout is drawing attention from artists, particularly those outside the mainstream.

Indie artist Steven Cravis shared his experience after receiving over $1,000 for 26,456 streams of his track “Dark Crystal” on Peloton. Cravis, who released the song under the alias Happy Halloween Music, was paid $1,078.46 for its feature in a Halloween-themed Peloton cycling class. That translates to approximately 4 cents per stream, far higher than the rates from larger DSPs.

In contrast, Cravis has faced difficulties with platforms like Spotify. His track didn’t meet Spotify’s new royalty eligibility requirements, which now require tracks to hit 1,000 streams in a 12-month period to qualify for payouts.

Since January 2024, his Spotify royalties have been reduced to $0, despite his song’s success on other platforms. The frustration stems from Spotify’s changes, which were designed to prevent fraudulent streams but have inadvertently impacted legitimate artists like Cravis.

Peloton’s ability to pay higher per-stream royalties has made it a surprising ally for indie artists, offering a welcome alternative to the lower payouts from bigger streaming services. Although Peloton doesn’t yet match the streaming volumes of Spotify or Apple Music, its payment structure is helping artists like Cravis earn more for their work.