The mechanism
Editorial placements are chosen by service staff and pitched through official channels. Algorithmic placements are generated from listener behaviour signals such as save rate, completion rate and skip rate. Both increase the numerator in the pool-share calculation that determines payout.
A worked example
What it is confused with
- Paid playlist promotion Official editorial pitching is free and internal. Third-party paid placement on unofficial playlists is a different market and can trigger artificial-streaming enforcement.
- Per-stream rate Placement changes how many streams you get. The per-stream rate is determined separately by the pool-share model.
Why it matters
It is the single largest short-term lever on streaming income, and the difference between official pitching and bought placement is the difference between growth and a takedown.
Sources: US Copyright Office
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Related: Recoupment · Black box royalties · 360 deal