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A visual essay

The case for catalog.fm

How streaming pays independent artists today, what we're building instead, and why the honest answer isn't as simple as a new payment model.

How streaming works todayPro-rata: The model that runs streaming.

You pay a monthly subscription fee.

SUBSCRIBERSGLOBAL POOLARTISTS

Every fee in your country, every month, is gathered into a single pool. The pool is divided across every track on the platform, weighted by each track's share of total streams.

SUBSCRIBERSGLOBAL POOLARTISTS

This is the pro-rata model. It has been the default since music streaming began.

Your money flows to whoever was streamed most globally, not necessarily the artists you listened to. Even if you only listened to your favorite artist all month, they may not receive any of your subscription fee if their tracks don't reach a thousand plays—or aren't popular enough on the platform.

Same dollar. Different math.

catalog.fm uses an alternative payout model that makes it clearer how each listening subscription directly supports the artists a listener actually plays.

The status quo · Pro-rata

Your money joins a global pool.

SUBSCRIBERSYOUGLOBAL POOLCOUNTRY / MONTHTOP STREAMStailglobal play count

Every subscriber's fee in a country is gathered into a single monthly pool, then divided across every track on the platform by each track's share of all platform streams. Most of your fee follows whoever dominates aggregate listening—not necessarily the artists you listened to.

catalog.fm · User-centric

Your money follows your listening.

YOUARTISTS YOU LISTENED TOArtist A42% · $4.36Artist B26% · $2.70Artist C18% · $1.87Artist D9% · $0.93Artist E5% · $0.52your listening time

Your fee is split only among the artists you listened to, weighted by how long you listened.

Listen to one artist all month and they get your whole contribution. Listen to twenty-five and it splits twenty-five ways. Either way, the people you played are the people you paid.

This isn't a new idea.It's just been done in pieces.

Three streaming-era platforms have each addressed part of the problem.

Platform
What it does
What it doesn't
Spotify
What it doesPro-rata payouts. About $0.004 per stream on average (Spotify Loud & Clear, 2024).
What it doesn'tNo user-centric allocation. 1,000-stream minimum since 2024: tracks under that earn $0. No subscriber-facing transparency about where each fee goes.
SoundCloud
What it doesFan-Powered Royalties (2021): user-centric allocation for monetized artists. 135,000 artists earned ~60% more on average.
What it doesn'tOnly directly monetized artists. Most listeners don't pay. No subscriber-facing transparency.
Bandcamp
What it doesDirect-to-artist purchases. $1.3B+ paid to artists in lifetime; 82% to artist on every sale. Bandcamp Fridays. Banned AI music.
What it doesn'tNo streaming revenue. Purchase-only: no ongoing earnings from listening. Sold twice in 18 months.

None has done all of: user-centric streaming, ongoing revenue from listening, and transparent reporting to subscribers about where their money went.

That gap is what catalog.fm is built around.

What would an artist earn?

Two variables drive most of it: how many people listen to the artist each month, and the artist's average listening share—the portion of each listener's monthly streaming time spent on this artist, averaged across the whole audience.

For example, imagine an artist has 4 listeners. Listener A listens 3%. Listener B listens 19%. Listener C listens 10%. Listener D listens 8%. Add those up (40%) and divide by 4 listeners = 10% average listening share.

Pick a number of monthly listeners and an average listening share below. The calculator estimates a monthly payout under user-centric, assuming every listener is a paying subscriber.

100K
2.0%
Estimated monthly payout$20,746from 100K listeners

Payout is monthly listeners × subscription revenue per listener after fees × avg. listening share.

100,000 × $10.37 × 2.0% ≈ $20,746

Subscription revenue per listener after fees (same constant as in the model):

$13 × (1 − 15% − 2.9%) − $0.30 = $10.37

Illustrative only: every listener counted is modeled at full-price subscriber economics—the payout math above—not a forecast for any one career. Totals still swing with real audience size and how fragmented listeners are across the artists they play.

It's not that simple

The average streaming subscriber listens to hundreds of artists in a single month. Each of those artists is splitting that subscriber's $10.37 hundreds of ways. The big number above shrinks fast.

And the split isn't even. Some artists get 30% of a listener's attention; most get less than 1%. The shape of that distribution is captured by the Gini coefficient: the same metric economists use for income inequality. A coefficient of 0 means every artist would be paid equally; at 1, the top artist would receive the entire pool and everyone else would receive nothing.

$100 split between 100 artists

G = 0.50

As G rises, money concentrates into fewer, bigger dots.

% of pool0%100%Low → high earners
  • Top 1% earn3%
  • Top 10% earn27%
  • Bottom 50% earn13%

←Drag to compare→

EQUAL0.00
DENMARK0.27
USA0.41
S. AFRICA0.63
STREAMING0.93

Streaming sits in the 0.85–0.95 Gini range. More concentrated than income inequality in any country on earth. Switching the payment model from pro-rata to user-centric barely moves that.

The math model isn't what flattens earnings. Listening habits are.

Designing featuresWith intention.

Listening on catalog.fm comes with a running ledger of who got paid because of you. A donut chart shows the artists you played this month. An impact card shows the time and the dollars that flowed to each one.

Transparency isn't a mood. It's a product pillar we run features against. When listeners can see the consequences of how they listen, which artists they're actually supporting and how much, they listen with more intention. The narrower the listening, the more meaningful the support per artist.

We don't dictate how anyone should listen. We make the consequences of how you listen transparent.

Listening Distribution

Artists Supported
23
Unique Artists
Listening Minutes
1800
Total Streamed

Your support · Big Thief

38%of your subscription
This month's payment to Big Thief$3.94
Based on your listening time38% of $10.37

You listened to Big Thief for 11h 24m this month, about 38% of your total listening time. That share of your subscription went directly to them.

What we can and can't change

Honest about what we can change.

A more equitable platform is something we'd love to build. We can't promise that user-centric, even paired with the design choices above, will flatten platform-wide inequality. The same artists who dominate everywhere else might still dominate here.

That isn't the goal. The goal is simpler:

  • Every subscriber is confident their fee goes to the artists they actually played.
  • Every feature decision is evaluated against whether it benefits or harms artists.

We use the Gini coefficient and Zipf concentration as our north stars. Not as guarantees, but as the metrics we measure each new feature against. Does it surface artists outside the head of the curve? Does it make focused listening easier? Does it concentrate or distribute attention?

Where your money goes is built into the system. How you listen is yours. We'll be transparent about how the two interact.

Join the waitlist

catalog.fm is in development. If this sounds like something you'd use or want to support, join the waitlist and we'll keep you updated on our progress.

I plan to use this platform as a: