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The problem is:

Step 1: create a music service and get on-board as many musicians as possible with attractive rates and the promise of a future with big audiences and less intermediaries

Step 2: the business grows because you have many famous/good artists in your catalogue

Step 3: Congrats, you are now the #1 musical service in the world! Many people associate "music streaming" with your brand. You get a lot of "musical normies" as customers in the process.

Step 4: start lowering royalties you give to musicians. They will stay anyway because you are the #1 brand and bring listeners

Step 5: add your own music to places where normies just listen to music, without caring who the hell the author is. So, you have to pay less revenue to the rest of artists, because they are now getting less listenings, even if the royalty per listening stays exactly the same.

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