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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)

#52
post #43
post #41

Earlier quoted context omitted.

Don't non-premium users get ads interspersed into their playlists to make up the difference?

It doesnt make up for the difference

Your comment implies the ad-supported users are responsible for revenue loss.

In my mind, decisions like giving Joe Rogan 100 million dollars are more likely culprits.

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

#53

Alfred Marshall, Principles of Economics (London: Macmillan and Co. 8th ed. 1920). https://en.wikipedia.org/wiki/Principles_of_Economics_(Marsh... ---8 The relative fall in the incomes to be earned by moderate ability, however carefully trained, is accentuated by the rise in those that are obtained by many men of extraordinary ability. There never was a time at which moderately good oil paintings sold more cheaply th…

> There never was a time at which moderately good oil paintings sold more cheaply than now, and there never was a time at which first-rate paintings sold so dearly.

True today as well, I'd guess, and at every intervening point in time too.

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

#54
post #43
post #41

Earlier quoted context omitted.

Don't non-premium users get ads interspersed into their playlists to make up the difference?

It doesnt make up for the difference

Why not? Ads are enough to pay the licensing costs for radio stations, which have higher distribution costs and worse economies of scale than Spotify.

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

#55

I’ve been very interested in the user-centric model described, but I’m not aware of any streaming services using it. What are the chances that Spotify would make this an option? Even if it was just opt-in, that we go a long way to keeping me with them as a premium subscriber.

And, is there any competitor who offers: Android Auto integration, Linux desktop client, open source "receiver" client like libre spot? Bonus: Ogg Vorbis or Opus compression?

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

#56

The algorithm for payment is dumb. If I pay £15 a month and only listen to 4 artists over that time (I’m very predictable) I want those 4 to get £3.75 each. But they won’t. Lady ga ha will get most of it.

That's why I use Bandcamp.

There I know where my money goes and I can even decide how much I want to give the artists.

https://bandcamp.com/

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

#57
It'd be pretty interesting to see a similar curve for software engineers. It's pretty clear that FAANG pays a lot more than most other companies and also that SV and NY companies regularly pay 3-4x as much for medium-level engineers as US heartland and EU companies pay for very senior devs. Then there are the vast offshore body farms in east Asia where a senior dev makes 10x less than that again. Also, if you count stock compensation there must be a few early unicorn employees that made 10x FAANG levels.

It seems like it'd be a pretty steep power law, maybe even more so than the Spotify example from the article.

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

#58
post #17

The algorithm for payment is dumb. If I pay £15 a month and only listen to 4 artists over that time (I’m very predictable) I want those 4 to get £3.75 each. But they won’t. Lady ga ha will get most of it.

Edit: just to bring this up a bit higher in the thread, replies like from u/kgermino, u/dtech, and u/anonymoushn are saying that popular artists rack up their number of plays from background noise (my wording, not theirs) whereas niche artists won't have that advantage. A bar or coworker might play a popular playlist a ton of times as background noise whereas your niche artist will have some dedicated people listenin…

Currently, each played song will earn a fraction of a cent/penny to an artist (around 0.4 to 0.8 cent)[1].

If you played a single song during the month. That artist would only get that fractional cent. The remaining of your monthly fee will go to other artists you have never played and may have no interest financing.

Most will be the popular artists du jour pushed by the records labels. They like the current system because -by definition- popular songs will be played a lot, probably in large part by free users (they are the majority anyway at around 55%)[1].

So popular streams always get the lion share of Spotify's revenues, mostly financed by those who don't listen to them.

[1]: https://www.businessofapps.com/data/spotify-statistics/

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

#59
post #19

It's quite fascinating to see the comments on this article as it's pretty obvious who clicked the link and who only looked at the title here at Hacker News. The article itself is called "Pro Rata and User Centric Distribution Models: A Comparative Study" and it's a study showing the difference between "pro rata" (what's happening today) and "user centric" (a user gives their money to the artists _they_ listen to). Th…

I'd also wish all these "studies" brought in the Big Four record labels into the equations [1] as they are the ones primarily responsible for this.

[1] See "Consolidation", https://en.wikipedia.org/wiki/Music_industry?wprov=sfti1

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

#60
post #28

Earlier quoted context omitted.

If it does it by aggregated listens and not by artist, then other people listening to some other artist diverts their funds to that artist. If they did it per user, that wouldn't happen.

Can you make the math work out in a way that my funds are diverted to another artist? Because what you're saying sounds logical but when I try and compute it, as in the final paragraph of my comment above, it doesn't work out that way. But I could be wrong! Please try it and let me/us know what you find!

I pay $15 and listen to Gay Bar by Electric Six once.

You pay $15 and listen to Bad Romance by Lady Gaga five thousand times.

We are the only Spotify users.

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