100 people subscribe to spotify and listen for 100 hours a month each, for $10 a month. You listen to your favourite artist for 50 hours and other stuff for 50 hours. No-one else listens to your favourite artist.
I assume that if this is band is treated as the "average" Total listening hours = 100 * 100 = 10,00. Total money: 100 * 10 = $1,000. They get: 50 / 10,000 * $1,000 = $5
That seems fair? Obviously some bands won't have negotiating power when they first start and might get less, or some get more, but that feels like how the industry always worked, and not something to do with spotify?