Great Post, very educational. But, what about the cut of the recording labels? Not all indie bands can hope to be discovered unless they do some crazy marketing. There’s a role the streaming services are playing which is providing consumers a simple way to choose and listen to who they want to but at the same time, artists are getting a raw deal here. I do like the subscriber share model you are proposing, but ultimately if we rely on amount of streaming to get paid, we will be putting a lot of pressure on the bandwidth itself, somebody has to pay for that.
What if any internet service you use including streaming service should have multiple components like bandwidth+service cost+content cost etc.? This way everybody wins. I don’t think we have seen the full effect of bandwidth overload, currently streaming music, like rest of the internet based services which run on advertising is riding a wave without worries about the overall cost, which will come back to bite us soon.