You pay 10$ to listen to hundreds of songs a month, how can it possibly be profitable for artists?
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Essentially, Spotify makes a deal to get rights to a giant catalog of songs just like radio stations do. They pay an upfront fee plus a bit extra for the songs that get played the most. Artists get part of the licensing fee and bonus depending on their contract with their record company. It works out to a tiny tiny amount unless the song is immensely popular (and even then, not a whole lot).
There are companies whose whole function is to make deals with record companies to resell access to the record companies’ artists’ songs. They cut deals, and the artists get a fraction.
In the end, the artist doesn’t get a whole lot – often close to nothing. They’ll make much more money touring, merchandising, and promoting things than they will from radio play and streaming services.
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