It’s a bit complicated really. They distribute money all over the place, and then the artist gets paid.
It’s kind of the “industry standard,” which sucks, but Spotify pays out less than industry standard. I could go on a rant about how they suffocate indie artists to ensure major labels get their share, but I’ll spare you lol.
I know how it works. Been in this industry a while. I wasn’t expecting you explain — I just responded.