Streaming services (Spotify, Apple, etc.) calculate royalties for artists by putting all of the subscription revenue in one big pool. The services then take out 30% for themselves. The remaining 70% is set aside for royalties.
This giant bag of royalties is then divided by the overall number of streams (aka “plays” or “listens”). The result is called the “per-stream royalty rate”.
The problem lies in the fact that this “Big Pool method” only cares about one thing, and one thing only: the overall number of streams. It does not care even a tiny little bit about how many subscribers generated those streams.
This leads to clickfraud and several other scams.
Streaming music is ripping you off
Streaming services (Spotify, Apple, etc.) calculate royalties for artists by putting all of the subscription revenue in one big pool. The services then take out 30% for themselves. The remaining…
