The idea, is that they make it up in volume. Spotify has over 100m premium users, so the idea of that artists get a share of that big ass pot, and unlike a single that you buy for a couple of dollars, they make money on every listen. Those ear worms that people play on repeat, or the song that’s in every runners playlist generates recurring revenue for the artists.
In practice, most artists are not super happy with the model. The category of musicians who’ve done best by the deal are the older ones, who’ve already sold the album, and the remaster, and are getting the recurring revenue on top for free (without it having impacted the original sales)
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