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# Labels want to change how streamers pay: Find out if you’ll win or lose
- URL: https://www.hypebot.com/labels-want-to-change-how-streamers-pay-find-out-if-youll-win-or-lose/
- Published: 2023-06-14T14:50:20.000Z
- Updated: 2023-06-14T14:50:24.000Z
- Description: A new study looks at how a shift from the current system of pro-rata music-streaming payments to user-centric payments would impact artists. Under pro-rata music calculations, artists are paid proportionate. Continue reading [https://www.hypebot.com/hypebot/2023/06/labels-want-to-change-how-streamer
- Author: Bruce Houghton
- Tags: Indie Music, Major Labels, Streaming, DIY, DIY musicians, music, Music Business, music industry, Music Tech, musician, musicians, Spotify, #wp, #wp-post, #Import 2026-01-21 09:44

A [new study](https://www.hypebot.com/study-shows-who-wins-and-loses-if-music-streamers-adopt-user-centric-payments/) looks at how a shift from the current system of pro-rata music-streaming payments to user-centric payments would impact artists.

Under pro-rata music calculations, artists are paid proportionate to their share of the overall streaming volume. But UMG, Tidal, Deezer, and others are experimenting with a user-centric payment system (UCPS) wherein each user’s subscription fee is divided proportionally among artists based on the consumption of that individual user.

### Who Wins and Who Loses?

While[ the study lays out its findings](https://www.hypebot.com/study-shows-who-wins-and-loses-if-music-streamers-adopt-user-centric-payments/) nicely, figuring out if an individual artist will be a winner or loser under a new payment structure can get a bit complicated.

![](https://storage.ghost.io/c/3a/95/3a957c06-c825-4057-9939-0a274cc16d23/content/images/www-hypebot-com/wp-content/uploads/2023/06/payment-option-transparency_study_promusik_en-1.png)

Fortunately, the researchers created a tool that provides some answers.

By examining three key factors and playing with three sliders, you can get a pretty good idea of how an artist’s revenue will be affected. The factors that directly determine which artist will benefit from UCPS are:

1. **User Reach** (fanbase size): “M*y Relative User Reach Index is,,, (a score of 1-100)”*
2. **User Commitment:** *“My listeners stream me, among other artists, \_\_% of the time.”*
3. **Average User Spend:** *“My Average User Spend Index is 100.”*

User spend is measured in subscription revenue but could be expanded to include premium subscription tiers and other income sources driven by a fan’s interest in a particular artist.

**You can simulate the impact of UCPS on an artist’s income [here](https://paymentoptiontransparency.com/?ref=hypebot.com)**. Remember, trying to score yourself relative to other artists is important.

#### **MORE: [Study shows who wins and loses if music streamers adopt user-centric payments](https://www.hypebot.com/study-shows-who-wins-and-loses-if-music-streamers-adopt-user-centric-payments/)**

**Bruce Houghton* is the Founder and Editor of [Hypebot](https://www.hypebot.com/), a Senior Advisor at [Bandsintown](https://www.bandsintown.com/?ref=hypebot.com), President of the[ Skyline Artists Agency](https://skylineonline.com/?ref=hypebot.com), and a [Berklee College Of Music](https://online.berklee.edu/courses/touring-101?ref=hypebot.com) professor.*