Spotify calculate royalties at the end of each month based on a track's proportion of total streams. For instance, if a track accounts for 1% of all Spotify streams in a month, it earns 1% of the royalty pool for that period.
Previously, Spotify included all streams in calculating a track's share of total streams.
However, as of April 2024 Spotify calculates the streamshare each month only for tracks that have achieved at least 1,000 global streams in the past 12 months.
This means that a track starts earning royalties from all its streams in the month, if it meets this eligibility criteria in the first month. Streams from months before it reached this threshold do not generate royalties.
For example, if a track garners over 1,000 streams in its debut month on the platform, it immediately qualifies for royalty calculations that month based on all its streams. Conversely, if a track has 750 streams in its first month and 500 in the second, it will earn royalties on all 500 second-month streams — and will continue to do so in subsequent months as long as it remains eligible.