Short spoken explanation (single speaker) about how digital service providers (DSPs) handle streaming revenue: DSPs pay per-stream rates that vary by platform (examples cited for Spotify and Apple Music), earnings accumulate over a 30–60 day period, and then platforms pay the accumulated revenue to distributors.
So what ends up happening is the digital service providers like Spotify, Apple Music, they don't deal with the physicals, right? They only deal with screaming and digital downloads. Right. When they collect that money from a screaming perspective, every distributor have different rates, right? So Spotify pays out on average.003 or 4. Right? Apple Music might pay out.005. Everybody has their own percentages and it accumulates over time. And then once this accumulated over that 30 day period or 60 day period, they pay it all to the distributor.
