That revenue model makes no sense. How would paying an artist on the relative user plays make any sense? So basically there is no direct relationship with number of plays and revenue? You need to abstract that part out. Artists should be paid some amount per stream.
Is there a market that actually uses a system like that? It just seems convoluted. It sounds like just some idea someone made up to back into paying some artists more in favor of others. And I'm not even sure it would have the desired effects. I'm sure Swift is on a lot more playlists that Spotify pushes than Obscure Artist.
It makes sense because each user is paying. I would like the my personal payment to Spotify to be split between the musicians I listen to, and none of it to go to Taylor Swift.
Yes, it wouldn't be a direct relationship between number of plays and payout. It would instead be a direct relationship between user payment and payout.
>Is there a market that actually uses a system like that?
Yes, physical media.
Number of streams shouldn't necessarily be directly related to payout anyway. If you purchase a CD the artist gets that payment once, and you can listen to it as many times as you like.
I don't understand the argument about paying all artists a fixed amount per stream when customers aren't paying a fixed amount per stream in an unlimited subscription model. If I listen to artists X, Y and Z, it makes a lot more sense to me that the only people who get paid from my subscription money are artists X, Y and Z. As opposed to the situation we have now, where, as a sibling comment points out, if I never listen to Taylor Swift the largest portion of my subscription fee still goes to her.
Is there a market that actually uses a system like that? It just seems convoluted. It sounds like just some idea someone made up to back into paying some artists more in favor of others. And I'm not even sure it would have the desired effects. I'm sure Swift is on a lot more playlists that Spotify pushes than Obscure Artist.