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“User-centric system” is when I listen only to a small indie band whole month, they get all of my $9.99. As opposed to the current state where the chart toppers
by ssttoo 7y ago
“User-centric system” is when I listen only to a small indie band whole month, they get all of my $9.99. As opposed to the current state where the chart toppers get 9.98 and my indie favourite gets 0.01. But
> Spotify’s former director of economics thinks it neglected to account for higher administrative costs
I don’t get it. How are admin costs higher if you simply change the formula? To a simpler one IMO.
- zck 7y agoI don't know if they're higher administrative costs, but it requires more trust in Spotify. In the constant stream revenue model, you take the total revenue Spotify is paying out to artists, and divide it by the total number of streams, and that's the cost per stream. Multiply that by the number of streams an artist had, and that's how much money they get. You only have to trust three numbers from Spotify, and two of them are global numbers, so other people will look into them. In the stream cost per user revenue model, you do that _for each user_, and then sum up each artist's revenue. That's a whole lot of math to be done. Now, computers can do that, but auditing this will be far more complicated.
- ssttoo 7y agoThank you, makes sense. I was wrong that the per-user is simpler. Yet, it’s only fair. I wouldn’t buy a Rihanna album, in the old physical model, why would she get get my money in the new one? And it’s probably very likely they already have the userId -> songId logs for recommendations and such