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SPOTIFY STILL PAYS ARTISTS OUT OF ONE BIG POT!!

(via Music Business World)

Streaming, driven by Spotify, has propelled U.S. recorded-music industry growth for three years. Spotify in accordance with other leading audio streaming services currently pays money to music rights-holders via a simple "pro-rata" model.  Essentially, this means that the firm pools all of the distributable riches it generates each month then dives up this cash based on the popularity of individual tracks. So, if five Drake songs pull in two percent of all subscriber plays in December, Drake (and other folks who own rights to those five tracks) will get two percent of Spotify's user-paid money. 


Spotify and its rivals should be adopting a "user-centric" payment structure, this means that if you pay $9.99 a month for Spotify Premium and play nothing but Jon Hopkins, the distributable portion of your month (around $6.99 per month) should go to no one but Jon Hopkins - as opposed to being dumped in a big pot of money, before lining Drake's pockets. 


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