This is how the Spotify money flows.
Spotify is a business that offers streaming music to its users. Spotify gets its money mostly from advertisers and premium subscribers.
Like any other company, Spotify has costs such as staff wages, rent and rates for the offices, and server costs for all the computers that deliver the music. Spotify also needs to pay the record labels and publishers that provide the music in the first place. The record labels then give some of this payment to the artists who created the music and to the writers who wrote the songs. PRS for Music also collects some money for the songwriters, composers and music publishers. The key thing to remember is that as Spotify earns more money, the amount it pays back to the artists also increases.
So in the beginning, here’s what the Spotify money flow looked like: