[weissadam]

I think the problem is that there is no distinction made between computer generated playlists (eg: Yoga Radio) and listener initiated streams.

Why not keep the existing royalty structure, but split the royalty pie based on user initiated streams and computer generated streams. If someone buys premium and only listens to Yoga Radio:

  30% Spotify
  70% Existing Yoga Radio Big Pool Royalty Structure

But if 50% of their listening is actual artists they have chosen (download to phone, click on artist/album or song/shared playlist from someone else/own playlist):

  30% Spotify
  35% Existing Yoga Radio Big Pool
  35% Direct cut determined by per-listener chart

Or if Mom signs up and only listens to her kid:

  30% Spotify
  0% Yoga Radio
  70% Direct cut determined by per-listener chart (all to one with love from Mom)

This not only rewards artists with loyal fanbases, but it also fairly compensates artists who compete in the mass market where people just listen to the radio and don't care.

Best of both worlds, no?