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JazCE | 2 years ago
i think there's an over-simplification of how this works going on. When you buy a $10 cd from let's say your dad's friends garage band, that $10 is going to your dads friend, and obviously they might have expenses before they really see that $10 (buying CD-R's, printing, etc etc).
you spend $10 on spotify premium, and exclusively listen to your dads friends garage band, that $10 is not going to your dads friend, it's going to spotifys bank account which will then be used to pay for execs, macbooks, operating costs etc, but also be used to fund the artist pool. so your $10 and some other persons $10 that they use for elton john records, all sit in the same account. Elton John via EMI or whoever, might have negotiated a 0.000005c per stream deal and so gets that. your dads friend might be on a very basic rate of 0.000002c per stream (numbers made up), and will receive that. so yeah elton or taylor or other big names will get a better deal.
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