Contrary to popular belief, the highest-paying streaming platform for musicians isn't one of the mainstream services like Spotify or Apple Music. Instead, it's Peloton, an exercise company known for its fitness classes set to music. Despite not having the massive user base of leading digital service providers (DSPs), Peloton offers significantly higher per-stream royalty rates, making it a surprising ally for independent artists. This article delves into how Peloton’s unique approach to royalties is benefiting musicians and compares it with other major streaming platforms.

In recent years, Digital Music News has meticulously tracked the per-stream payout rates across various DSPs. In 2021, Peloton was estimated to pay approximately 3.1 cents per stream, far exceeding the fractions of a penny paid by industry giants such as Spotify, Apple Music, YouTube, and Tidal. While Peloton may not be a dominant player in the digital music economy, its generous royalty rates have caught the attention of many indie artists.

One such artist is Steven Cravis, who recently shared his experience with Peloton's payment structure. After receiving a royalty check from Tunecore, Cravis noted that he earned $1,078.46 for 26,456 streams on Peloton. A quick calculation reveals that Cravis received about 4.07 cents per stream—a rate even higher than what was reported in 2021. The streams were all for a single song titled "Dark Crystal," created under the artist alias Happy Halloween Music. This track featured prominently in a Halloween-themed cycling class playlist on Peloton, alongside other spooky favorites.

Cravis also highlighted the stark contrast between Peloton and Spotify. According to him, Spotify has been paying him $0 for the same artist's music since January 2024 due to changes in their royalty payment policies. Spotify now requires tracks to earn at least 1,000 streams within a 12-month period before artists can receive any royalties. This shift aims to prevent fraudulent activity but inadvertently penalizes smaller, legitimate artists. In contrast, Peloton’s feature of his playlist earned Cravis over $1,000 in October alone, demonstrating the tangible benefits of Peloton's higher payout rates.

The disparity between Peloton and traditional DSPs underscores a significant issue in the music industry: while mainstream platforms focus on volume, they often overlook the importance of fair compensation for artists. Peloton's approach, though unconventional, provides a glimmer of hope for indie musicians seeking more equitable treatment. By offering higher per-stream payouts, Peloton not only supports artists financially but also highlights the need for reform in the broader streaming ecosystem.