Are pro rata models fair?

Shark Pool – Music’s Pro Rata Model Problem

Streaming platforms like Spotify and Apple Music use a “pro rata” model to pay artist royalties. That means artists get paid not by the amount their tracks are played, but by the amount they’re played compared to all of the other artists on the platform. The reality is pro rata streaming models favor the most popular artists on the platform. They typically skew benefits towards major labels and paid-for features. Independent artists usually suffer as a result. We at Artistco believe that with our fellow members, we’re developing a fair, transparent, innovative, and user friendly alternative.