Back to Hub

Streaming 'Pro-Rata' Royalty Distribution.

Diagnoses the brutal zero-sum math of streaming royalties, where an indie artist's dedicated fans unknowingly pay Taylor Swift because monthly subscription fees are pooled rather than user-centric.

## Your Money Goes to Drake

If you pay $11 a month to a streaming platform, and you only listen to your local indie punk band, you assume your $11 goes to that punk band (minus the platform fee). It doesn't. Streaming doesn't pay out based on what *you* listen to. It pays out based on what *everyone* listens to.

### FAQ

**Q: Why do musicians say streaming is a scam?**
A: The Pro-Rata Model. All $2 Billion of monthly subscription revenue from users is poured into one giant bucket. The Tech platform mathematically determines payouts purely based on Total Global Market Share. If Drake gets 5% of all streams worldwide this month, Drake's label takes 5% of the massive bucket—which includes 5% of *your* specific $11 subscription, even if you never listened to his music. The hardcore fans of an indie band are mathematically subsidizing the payouts of the Top 50 Global Pop Stars. The "Per-Stream Rate" (which musicians constantly complain about) is not a fixed number; it is just a dynamic fraction of how diluted the global pool became that month.