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 1 seems really unfair to the artists:
"The method assumes that the people who stream much bring much revenue to Spotify."
The problem 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 for Spotify. But still the artists I listen to get 5+ times as much as royalties from Spotify based on my listening compared to what the artists she is listening get based on her listening. I really feel this is not fair in any way.
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 should fix the problem completely.
PS. This is not a dublicate idea with https://community.spotify.com/t5/Spotify-Ideas/Artist-Payment-Pay-by-listener-and-not-by-amount-of-plays/idi-p/969755 since both the problem and the way to fix it are different.
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