I know a lot of professional musicians who make a living from their craft. Their income sources are touring, Patreon (or the like), Bandcamp, and then streaming.
Oh, people at the top rake in big bucks, but most of the money that streaming distributes comes from people who play music all day long based on recommendations, or tags.
I met one person who makes a living on Spotify. He has literally thousands of tracks labelled "smooth jazz" and makes a steady income entirely from people who type "smooth jazz" into Spotify and then leave the program running. He isn't ripping anyone off - his tracks are unmemorable but competent and fit the bill. But this isn't really doable for people who think of their music as creation and not a commodity.
If I like an artist, I buy their tracks outright, often on Bandcamp. Quite often I buy their whole catalogue. Thing is, if I buy a $10, 10-track album on Bandcamp, the musician gets between $8.50 and $10, almost immediately. But if I play that same album 10 times on Spotify, they get $0.30, eventually. I'd have to play that album 300 times to get the same payout to the artist, and it's extremely rare for me to play albums that often, and never in one year.
I don't usually care much for background sound. But my brother, like many people, does and he has either the TV or streaming music on as background pretty much all the time.
Instead your money goes almost entirely to Ed Sheeran and Taylor Swift - artists you may not have listened to even once.
The distribution among all artists isn't equal but the result of very complicated licensing deals with the various major labels. The deals change every year, and the parties negotiate super hard. It's quite common for a deal for, say, 2023, to only be finalised in November 2023 - i.e. 11 months late. It's ridiculous but that's how it is.
Most of the complexity behind the payouts stems back to the special treatments the three majors want for their artists. After all, they need something special to offer to their roster. And since they have the most important artists, they have the negotiating power to pull this stuff off.
Source: worked at Spotify in the content team.
That’s not what happens.
What’s the benefit in me listening to a fake artist that is me? I would get $10 back for the $14 I spend. Seems like a lot of effort to go to.
You could argue that as Chesney has a label that’s upto him and his rights holder. Fine. What about Dave Smith , my local crooner down the pub. If all I listen to is him why doesn’t he get the $10?
My guess would be on the free tier, not the paid tier