One of the most debated concepts in the modern music rights industry is that of user-centered licensing. This model sees streaming royalties paid based on the behavior of each subscriber – a percentage of each subscriber’s subscription fee being distributed only to artists / labels that they individually listened to that month.
This model contrasts with the current “ pro rata ” streaming payment system, which sees all royalties on a service like Spotify aggregated at the end of each payment period … after which the rights holders of recorded music are paid based on their total market share plays across the platform.
This latter model, of course, benefits the world’s pop superstars the most; it is believed that the old model would bring more independent advantage …
News Highlights Business
- Headline: SoundCloud revolutionizes music streaming payments by launching a new royalty system
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