Based on this http://www.spotifyartists.com/spotify-explained/ the current distribution method is basically:
1: Divide the total revenue by the total number of streams to get X.
2: Pay X * the number of total streams of an individual rights holder to that rights holder.
This has several flaws out of which 2 seem really unfair to the artists:
1: The shorter the song the more streams it can get therefore this penalizes long songs that usually already are a niche category.
2: The method assumes that the people who stream much bring much revenue.
The problem with 1 is especially with classical music where the "songs" can easily be 10+ minutes long. When compared to a radio hit that are usually really short, always under 4 minutes, this just doesn't seem fair to the long songs. The paying customer uses the same amount of time to use Spotify but generates far less royalties to "her/his" artists.
The problem with 2 is easily explained through a real example. I'm a subsrciber and so is my mother. I easily listen to music 5+ times as much as she does but I don't generate any more revenue to Spotify. But the artist I listen to get 5+ times as much as royalties from Spotify. I really feel this is not fair.
My suggestion is to change the royalty distribution method into:
1: Keep track of the revenues by user / account.
2: Keep track of streams by user / account.
3: Divide the revenue by a user by the number of streams by that user to get X.
4: Pay X * the number of total streams of an individual rights holder by that user to that rights holder.
This would fix problem 2 completely and would fix problem 1 at least partially since most people have the tendency of listening more or less similar music and the really long songs are usually limited to only a few music genres.
Your idea has been submitted a while ago but unfortunately hasn't gathered enough kudos (50 per year). In order to keep an overview of the active & recent ideas in this forum, we will close this idea for now. However this does not mean that your idea has been declined by Spotify.
If you still feel strongly about your request, we encourage you to post your idea in a little different form again! Maybe now is the right time to receive the support of our community for your suggestion! 😉
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