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Pro Rata and User Centric Distribution Models: A Comparative Study (2017)

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Re: Pro Rata and User Centric Distribution Models: A Comparative Study (2017)

#5
> In any case, the user centric model gives more direct power to users to target the money they pay for the service to the artists or tracks they favour compared with the pro rata model, which is not transparent from their point of view.

This is the model most people would think their money goes to. But the recording industry has never been intuitive. Or fair.

Re: Pro Rata and User Centric Distribution Models: A Comparative Study (2017)

#6
post #2

On Spotify, the top 0.4% of artists are responsible for 9.9% of streams.

But not 9.9% of the revenue.

Bob streams track 11,12,13,14 1,000 times a month each for their €10

Jamie streams track 21,22,23,24 100 times each for their €10

Total revenue €20, Total streams 4,400. .45c per stream.

Track 11 gets €4.50, track 21 gets €0.45

Re: Pro Rata and User Centric Distribution Models: A Comparative Study (2017)

#7
post #3

An interesting way to tackle this issue could be user-centric payouts. [0] It feels like a fairer system but it has yet to be tested at a large scale. [0]: https://musically.com/2020/05/13/what-are-user-centric-music...

Does it make any practical difference? Surely in aggregate the totals end up broadly similar?

Re: Pro Rata and User Centric Distribution Models: A Comparative Study (2017)

#9
post #5

> In any case, the user centric model gives more direct power to users to target the money they pay for the service to the artists or tracks they favour compared with the pro rata model, which is not transparent from their point of view. This is the model most people would think their money goes to. But the recording industry has never been intuitive. Or fair.

Yes and no. I did personally think (before learning more) that my monthly payment was divided to the artists I listened to. But all money is pooled to a single bucket from which money is then distributed to all artists. So even if I never listen to any of the 0.4% artists here, 9.9% of my payment goes to them anyway.
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