The debate over Spotify payments to artists, however, is far from over.
The music industry is poised for another fiery public dispute over the money Spotify gives performers in 2019; but this time, the discussion will center on how, rather than how much, cash gets handed over.
Spotify, in accordance with other leading audio streaming services, currently pays money to music rights-holders via a simple “pro rata” model. Essentially, this means that the firm pools all of the distributable riches it generates each month, then divvies up this cash based on the popularity of individual tracks. So, if five Drake songs pull in two percent of all subscriber plays in December, Drake (and the other folks who own rights to those five tracks) will get two percent of Spotify’s user-paid money.
Sounds fair, right? Depends on who you ask.