Our approach to music is different because we prioritise fans and artists, and that is reflected in the app's features but also in our royalty model.
Lissen's features have been built upon our unique royalty model, created and negotiated with rights-holders to create a fairer ecosystem where streaming revenue is properly shared.
Our royalty model is called fan-centric because with us your money as a fan only goes to the artists you stream. It's as simple as that.
This differs from the pro-rata royalty system that other Digital Service Providers (DSPs) use because whereas other platforms pool subscription money into a platform-level revenue pot, at Lissen royalty payments happen at the user level.
Under our model, the royalties paid to rights-holders (artists, songwriters, publishers, record labels) are based on the amount of time that users spend listening to their music on the app. This means that small, independent, artists get their fair share of revenue from their listeners.
Artists therefore receives royalties based on the proportion of stream time their music received from each individual user's listening activity on the platform (Subscription amount for a Premium user, Ads revenue for a Freemium user), rather than the proportion of streams their music received across the entire platform.
This means that with Lissen the focus shifts away from the quantity of streams to the quality of streams. Artists are incentivised to cultivate a loyal fan base who stream their music loyally.
Here are some concrete examples for a Premium subscriber. To keep it simple, we assume each song lasts 3 minutes, and that $7 of the $10 monthly subscription goes to rights-holders (recording and publishing). Incumbent platforms typically pay rights-holders around $0.0025 per stream.
Light listener: 10 hours a month (600 minutes) is about 200 streams, so each stream is worth $0.035, 14 times what incumbents pay.
Typical listener: 20 hours a month (1,200 minutes) is about 400 streams, so each stream is worth $0.0175, 7 times what incumbents pay.
Extreme listener: a fan would have to stream 140 hours a month (8,400 minutes, or more than 4.5 hours every single day) before a stream on Lissen fell to what incumbents pay.