Your fee goes into one pot for your country
Say you pay for a music subscription every month and listen mostly to three artists. It feels natural to assume your fee is shared among those three. It is not. On Spotify, the money from every subscriber and every ad in a country goes into one pot each month. The pot is then divided by share of plays : if an artist's songs make up 1% of all streams in that country that month, the owners of those recordings receive 1% of the recording royalties paid there. The UK competition authority describes this kind of split, by share of plays, as the model most streaming services use.
A country with two listeners shows what that means. Both pay the same fee. One leaves music on all day and plays 900 songs in a month, and the other plays 100. Together they made 1,000 plays, so the first listener's favourite artists take nine-tenths of the recording royalties the two fees fund, including most of what the second listener's fee put in. Your plays still count : each one adds to the share of the artists you play. But your money follows what everyone around you plays, weighted by how much they play.
Spotify puts the calculation in its own words. Every month, in every country, a rights holder's streams in that market divided by all streams in that market gives its share of that market's royalty pool. Each pool is built from that country's subscription and advertising money, so the same play can be worth different amounts in different places.

Spotify pays the owners of the music, not the artist
The money does not go straight to the musician. Spotify says roughly two-thirds of its music revenue, from subscriptions and ads, is set aside for royalties. About four-fifths of that is for recordings and about one-fifth is for the songs themselves, which means songwriters and their publishers. Spotify pays whoever holds the rights : record labels, distributors that place independent artists' music on the services, publishers and collecting societies. It says it does not pay artists or songwriters directly. An artist can still be the rights holder, as an independent artist who owns their own recordings is.
What reaches the artist then depends on the artist's contract with those companies, and contracts differ from one artist to the next. That is why there is no single amount paid per play. The per-stream figures that circulate online, usually a fraction of a cent, are averages worked out afterwards, and they change with the country, the type of plan and the month. Spotify says no major service pays per stream, because listeners do not pay per song.

Since April 2024, a song needs 1,000 plays a year to earn on Spotify
Spotify changed one rule in April 2024. A track now earns recording royalties only if it reached at least 1,000 streams in the previous 12 months, counted across all countries. Royalties are still worked out month by month, and reaching the line does not pay for earlier months. Spotify's support page for artists says a track also needs a minimum number of different listeners, so that no one can reach the line by playing a track hundreds of times. Spotify does not publish that number. The threshold applies only to the recording side. Spotify says nothing changed in how songwriting and publishing royalties are calculated.
Spotify explained its reasons when it announced the change in November 2023. It said tracks below the line made up 0.5% of all streams and earned about $0.03 a month on average, money that often never reached its owners once withdrawal minimums and bank fees were applied. Spotify put the total for all those tracks at about $40 million a year. Spotify says the total paid to rights holders stays the same and that it keeps none of the difference. That money is spread over the tracks above the line instead. These are Spotify's figures and Spotify's reasons. Critics describe the same mechanism from the other side : little-played tracks below the line stop earning, and their share moves to tracks that are played more.

The fix people keep proposing, and who actually uses it
The obvious alternative is to split each subscriber's fee only among what that subscriber played. It is usually called user-centric payment. SoundCloud has used a version of it, which it calls fan-powered royalties, since April 2021, first for independent artists paid directly through the platform. Under it, an eligible listener's subscription money, or the ads they heard, goes to the artists that listener played. Warner Music Group joined in 2022. In 2023 Merlin, which licenses music for independent labels, joined as well.
Deezer, a French streaming service, is often named alongside it, but the model Deezer launched with Universal Music Group in France in October 2023 is a different one, which the two companies call artist-centric. It keeps the single shared pot and changes how plays are weighted. Plays of artists with at least 1,000 streams and 500 different listeners a month count double, and plays of tracks a listener actively searched for count double again. It also limits how much one listener can weigh : a listener's plays count toward payment up to 1,000 a month, and plays beyond that are scaled down, so the heaviest listeners cannot pull the pot without limit. In January 2025 Deezer and Sacem, the French society that collects for songwriters and composers, announced that the model would cover French publishing rights too. SoundCloud's model ties each fee to its own listener. Deezer's keeps the shared pot but limits how much any one listener, and any one play, can count.

- SoundCloud Help Center, Fan-Powered Royalties FAQs
- Music Business Worldwide, SoundCloud and Merlin strike global licensing deal for fan-powered royalties
- Music Business Worldwide, Deezer strikes artist-centric agreement with Universal Music Group
- Deezer Newsroom, Deezer et la Sacem étudient l'impact du modèle artist-centric pour les droits d'auteur
- Deezer Newsroom, Deezer and Sacem partner for fairer remuneration of publishing rights
When France ran the numbers, listeners moved more than artists
In January 2021 France's national music centre, the CNM, published a study run by Deloitte. It recalculated 2019 royalties for French premium subscribers of Deezer and Spotify as if each fee had gone only to what that subscriber played. These are simulations, not the results of a service that actually switched. The clearest shift was between listeners. In Deezer's data, the heaviest listeners, about 31% of subscribers, steered 69% of royalties under the shared pot. Under the user-centric model they would steer 31%, the same as their share of the fees.
Between artists the change was smaller than the debate suggests. In Deezer's data the 10 most-streamed artists would lose 17.2% of their royalties, several hundred thousand euros a year on average, and Spotify's smaller sample showed a 12.5% drop. Artists below the top 10,000 would gain 5.2% on average, which the study puts at under €10 a year per artist, and that sum is shared by everyone holding rights in the music, not what the artist takes home. Rap would lose about 21% and hip-hop about 19%, while pop would gain about 12% and rock about 13%. The CNM's president, Jean-Philippe Thiellay, concluded that this was not where the fight of authors, composers and performers for better pay would take place.
A peer-reviewed study published in 2024 by François Moreau and colleagues, using the 2020 listening of 154,505 Deezer premium subscribers, points the same way. In its simulations, user-centric payment would move money mainly away from superstars, rap and hip-hop, and new releases. The authors also found that the artist-centric model, as they modelled it, does not significantly raise what professional artists earn.

- CNM, User-centric payment system detailed report, January 2021
- CNM, Note by Jean-Philippe Thiellay on the UCPS study
- Hypebot, User-centric royalties will not lead to a significant shift in streaming payouts
- Moreau et al., Alternative payment models in the music streaming market, Information Economics and Policy
- RePEc, Moreau et al. 2024
The real question is who counts in the pot
So here is the sentence to keep. Your subscription is not set aside for the artists you play. It buys a share of everything played in your country. Your plays add to your artists' share, but the people who play the most decide most of where the money goes. Making your fee follow your own listening would mostly move weight from heavy listeners to light ones. For most artists, the French simulations put the change at a few percent.
That is why the argument has moved on. Spotify's 1,000-stream line, like Deezer's double weighting and its per-listener cap, keeps the shared pot and changes which plays count inside it, and by how much. Deezer's cap even borrows part of the user-centric idea, by limiting how far one heavy listener can steer the pot. The next time streaming pay is in the news, the useful question is not only how the pot is split but whose plays are allowed to count.









