Compare

Fan-powered vs pro-rata streaming royalties

Most streaming services pool every subscriber's money and divide it by total plays. Creator Connect divides each subscriber's money among the artists that subscriber played. The difference, with a worked example.

Pro-rata: how most streaming pays

Every subscriber's payment goes into one pool for the month. The pool is divided by every stream on the platform. Your money does not go to the artists you played; it goes to the pool, and the pool goes mostly to whoever had the most streams. Since 2024, Spotify also pays nothing on tracks under 1,000 streams in a year.

Fan-powered: how Creator Connect pays

Your payment is divided among the artists you played, weighted by how long you listened. Nobody else's listening touches your money. Each Premium subscriber contributes a flat $0.25 per day to the creators they played that day, and the platform settles it nightly. Step by step.

Side by side

Pro-rataFan-powered (Creator Connect)
Where your money goesOne platform-wide poolThe artists you played
Who decides the splitEveryone's listening combinedYour own listening
Minimum before a track earnsOften a stream threshold (Spotify: 1,000 / year)None
RateFractions of a cent per stream, set by the pool$0.25 per subscriber per day, divided by listening time
SettlementMonthly or later, through a distributorNightly, to the artist's balance
CollaboratorsPaid by whoever receives the statementPaid automatically by declared splits, with escrow for late acceptances

A worked example

A Premium subscriber pays $14.99 a month and listens only to one independent artist.

  • Fan-powered: that artist receives $0.25 for each day the subscriber listened, about $7.50 for a full month, from that one fan.
  • Pro-rata: the same $14.99 enters a pool where that artist's share is their fraction of all streams on the service. For most independent artists that rounds to a few cents, and under a 1,000-stream threshold it is zero.

Where fan-powered is honest about its limits

An artist earns here from the listeners they have here. Fan-powered payouts do not change what other platforms pay. The model rewards a real audience, not viral volume: a hundred devoted listeners pay an artist directly, and a million passive plays from people who never chose that artist do not exist to be paid for.

The founder's longer argument: Music streaming's broken promise.