2024-12-05 09:38
Pro Rata is a market centric/market centred system used by most (but not all) music streaming platforms. Example:
Listener 1: Pays $10 a month and listens to Ed Sheeran 18 times in the month.
Listener 2: Pays $10 a month and listens to Tame Impala 2 times in the month.
All royalty money ($20) goes into a royalty pool, which is then divided by popularity (number of streams).
In this case, Ed Sheeran gets 90%, whilst Tame Impala gets 10%. $18 for Ed Sheeran and $2 for Tame Impala.