Achickwitbeatz The Producer

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Music Streaming & the "Pro Rata" Royalty Payment System

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Pro rata is derived from the Latin word for “proportional“.

Monthly, the money collected from subscribers and advertisers gets pooled together, then divided by the total number of streams.

If (insert your favorite artist) had 5% of all streams for a particular month, that artist gets 5% of the entire pot for that month. This essentially means the artist receives 5% of each user’s money even if they’ve never listened to the artist.

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