This is how a large chunk of music royalty distribution works. For example, fees collected from restaurants, shops and other public places basically ends up in a large bucket.

Later the funds are being distributed after "market share", which means most of it will be sent to Taylor Swift or the Michael Jackson estate, even if the restaurant played nothing but epic fusion mathcore.

I'm guessing that the "big five" asked for a model similar to this when Spotify started, because it was a model they understood.