I verified the math using my own assumptions starting with 1000 subscribers that generate $10 per subscriber per month ($10,000 per month). I assumed that 900 of those users streamed 2000 songs per month, and listened to artist “A” 80% of the time and artist “B” 20% of the time, the other 100 users streamed 200 songs per month and only listened to artist “B”.
The current method calculates the revenue distributed to arts "A" and "B" as a ratio of the number of streams to the total number of streams. This method pays a monthly sum of:
If the revenue from the money each user payed for a subscription got distributed among the artists the individual subscriber listened to, this method would pay out a monthly sum of: