MONDO.NYC OCTOBER 14-17, 2025’s Post

While considering the Deezer article on their “artist-centric” model, moderator Serona Elton, Head of Educational Partnerships, The Mechanical Licensing Collective (MLC), led the analysis and explanation of the complications that come with different artist compensation models in “Streaming State of Affairs: Opportunity, Security & Fraud.” Panelists determined that the user-centric model is the favorite, as it distributes streaming revenue from listener to listener and reflects individuals’ musical preferences. In the pro-rata model, all the streaming monies go into one large pool, before being divided against the total number of streams across the platform. This results in only the most popular artists getting the largest paycheck. Michael Pelczynski, Chief Strategy & Impact Officer, Voice-Swap, observed that the pro-rata model made sense ten years ago when streaming’s potential was debatable, but today streaming is how the majority of the world listens to music. Lawrence Kanusher, Shareholder, Greenberg Traurig, LLP, also touched on the dangers of streaming fraud, fraud user’s methods, and how artificial streams are used every day to pull money out of the pro-rata streaming. Kanusher stated, “in the old model, the goal was to create demand for potential consumption. In the new model, the goal is to create demand for actual consumption.” Most of the panel agreed that the pro-rata model is likely outdated. Molly Neuman, President, CD Baby, summarized it perfectly, saying, “the pro-rata business model leaves artists to either compete with artificially inflated stream counts or to consider engaging in costly, unethical, and improper practices themselves.”

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Michael Hajas

Owner | Paralegal Graduate Diploma of DolbyRecords.com

3mo

You mean similar to the BIG 3 labels that Jelly role has become the whistleblower of exactly that, purchasing spins?

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