Qobuz, the platform for high-quality music streaming and downloads, today announced the results of an independent audit, confirming its commitment to fairer compensation for artists. In an industry where lack of transparency is often debated, Qobuz becomes the first streaming platform to have its average payout rate per stream officially validated. This groundbreaking initiative reinforces its position as a fair and sustainable model for the music industry.
Qobuz distributed royalties due to labels and publishers corresponding to an average amount of US$0.01873 per stream¹ for the fiscal year 2024. In concrete terms, 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.
Concrete figures to illustrate a commitment to quality and sustainable musical creation.
Since its creation, Qobuz has been committed to promoting sustainable, quality music creation. Today, in an unprecedented move towards transparency in the music industry, the platform reveals its average royalty rate per stream, reviewed by a leading international firm.
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 year². This means that Qobuz generates on average five times more revenue per user than the market average, which results in a significant impact on artists' remuneration.
Qobuz takes an approach that benefits artists.
Founded by music enthusiasts who wanted to preserve the integrity of the works and promote musical creation, Qobuz stands out for four key characteristics that directly benefit artists:
1. No ad-supported free tier: Its exclusive paid model ensures higher compensation for all actors in the music creation.
2. High quality subscriptions: All offers provide access to uncompressed (lossless) and high-resolution (Hi-Res) audio quality, as well as exclusive editorial content, justifying a premium positioning that ensures fairer payouts.
3. High quality download store: Qobuz’s online store allows users (not limited to streaming subscribers) to buy albums in Hi-Res and CD quality, offering rights holders direct and higher compensation. This model, which complements streaming revenue, is particularly key in supporting music outside of just Top 40 hits, as over 51% of downloads³ on Qobuz come from genres like rock, classical, and jazz.
4. Spotlight on diverse range of artists and music genres: Qobuz highlights artists and genres that are often underrepresented - such as jazz and classical releases. The editors' selections, playlists and awards give a more eclectic selection of artists greater visibility, allowing lesser known releases to garner more streams, and overall generating more revenue for a wider range of artists.
Music streaming: understanding its remuneration system.
It is important to note that Qobuz, like other streaming platforms, does not directly pay artists. In line with market practice, about 70% of the revenues generated are paid to rights holders (labels, publishers, distributors, CMO)4, who in turn pay artists, publishers, composers and authors according to their respective agreements.
Georges Fornay, Deputy CEO of Qobuz, declares: "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."
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¹ Over the 12 months to March 31, 2024, Qobuz booked royalties due to labels and publishers corresponding to an average amount of 0.018024 euros per stream. Converted in USD, it is USD0.018732 (exchange rate 1.0393 as of Jan. 31st, 2025). It should be noted that the methods of payment to labels and publishers are not systematically based on remuneration per stream. Calculation methods may vary from one contract to another.
Basis of preparation:
• Royalties correspond to the amounts recorded in the Financial Statements at March 31, 2024.
• The number of streams corresponds to the number of listens performed by Qobuz customers over the 12-month period ended March 31, 2024.
² IFPI 2023 - 117.60 euros. Converted in USD, it is US$121.13 (exchange rate 1.0393 as of Jan. 31st, 2025).
³ Source Qobuz.
4 In the music industry, rights holders are the persons or entities who own the rights to a musical work and are entitled to receive income from its exploitation.
