Sweden has the same system. You can read more about it here:
https://en.wikipedia.org/wiki/Private_copying_levy
The collected money is in general handed out by Copyswede [1], but for music it's handled by STIM [2]. STIM also supposedly handles paying money to artists played for customers at the barber, and all these special cases, and music played on TV, and so on.
I don't know for sure, but I think that the money is divided based on official sales data, so the artists who sell most also gets most of the "cassette tax" as it is known, because it was introduced as an added tax on cassettes back in the 80s.
It is not popular with consumers, since you have to pay extra for blank CDs, DVDs, USB sticks, and hard drives even if you don't use them to copy music. The tax is not to cover loss of income due to piracy, I just learned from the Wikipedia page, but to enable private copying of music without having to buy extra copies from the producer. As I said, since you have to pay even if you use the CD as a Linux boot disc, it's not very popular with the public, but a lot of people don't even know about it.
[1] https://sv.wikipedia.org/wiki/Copyswede (in Swedish)
[2] https://en.wikipedia.org/wiki/STIM (in English)