They made their first profit last quarter by having their own audiobooks and not needing to spend as much on music royalties.
Spotify pays out 70% of revenue, and Wierd Al can't do maths.
The bigger you are the more you earn per stream and the small ones will earn next to nothing.
Because that's basically what you are asking for. There are millions of artists, and the number increases daily. Unless you charge more per user the pie is just getting split between more people. What you say is exactly the same as people were saying with every other medium. I have £10 to spend on entertainment this month, perhaps I'll buy your album, perhaps not, and now you see £0 from me instead of a bit.
The "algorithm" as in the recommendation system and curated playlists that are shown to users, or are we talking about the algorithm that makes up the royalty payments i.e. Spotify's "streamshare" approach?
The world is upside down! oops