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If with lose out you mean that it's not financially sustainable for them, then it's not at all clear to me that's caused by the way Spotify splits revenue, inst

If with lose out you mean that it's not financially sustainable for them, then it's not at all clear to me that's caused by the way Spotify splits revenue, instead of Spotify just being too cheap for users to make streaming viable. Spotify takes in less than five bucks per Premium user per month, so after subtracting costs you need to quite a bit of listeners to make a living, even if Spotify shares it payout per user. If with lose out you mean that Spotify pays out less per stream to small artists as opposed to big artists, then that's not the claim made in the parent comment nor one I've been able to find any evidence for.

danpalmer 3y ago
My understanding is that the amount of money spent on music by consumers has dramatically increased in the streaming age. It's not clear to me that Spotify only passing on ~half after fees is any different to a CD bought in a shop that pays rent and needs manufacturing, physical distribution, etc. I'm fairly sure this is not about Spotify being too cheap, it's that the revenue distribution skewed in the transition from CDs to streaming in favour of popular artists.