On demand streaming

Purpose

Understand how different music streaming services (Spotify, Apple Music, YouTube Music, Amazon Music, etc.) calculate and distribute royalties to rightsholders.

Process

1. Choose one major on-demand music streaming service.
2. Research how that service pays out royalties. Try to answer the following:

• What are the two main revenue models (subscription and ad-supported)?
• What types of royalties does the service pay (e.g., public performance, mechanical, master recording)?
• How are payouts divided among labels, publishers, artists, songwriters, and PROs?
• What is the payout model? (e.g., pro-rata vs. user-centric)
• Are there any controversies or criticisms around how this service pays artists?
• Is the payout system fair to artists and songwriters? Why or why not?

1. Write a 2-page summary (approx. 350500 words) explaining what you found. Be sure to:

• Use your own words (no copying/pasting and no AI)
• Use headings for each section
• Cite at least 2 sources (news articles, official statements, music business blogs, or academic papers.