How Does Spotify Pay Artists?
Spotify pays artists based on a system of 'pro-rata' or 'streamshare' payments. Basically, artists get a percentage of Spotify's total revenue from advertisements and subscriptions, distributed according to the number of streams their tracks get. So, the more you listen, the more they earn!
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Spotify pays artists by dividing the money earned from subscriptions and ads among rights holders proportional to the number of plays each artist gets. More streams = more $$$.
Spotify calculates payments to artists from a 'streamshare' pool, which considers total streams and revenue. Basically, artists get paid based on their share of total streams.
They use a 'streamshare' model. If an artist gets 1% of the total streams, they get 1% of the revenue. Simple as that!
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