Re: Pay who first?
They do. If they were to go bankrupt, the artists would get paid first. The statement is misleading. I think what that was meant to say was that Spotify, being a for-profit organization, is supposed to figure out the bare minimum they can pay the creators of the music so that they have as much as possible left to return to the stockholders. Theoretically, a nonprofit entity wouldn't do that. Some nonprofit entities actually are run with their charitable point in mind and would fulfill that requirement. Unfortunately, we have lots of examples where that isn't the case. There are three models:
1. Nonprofit entity is founded for a specific purpose and run by people who believe in it. They collect a small amount for their labor in running the organization, a reasonable amount for organizational overhead, and the rest of it gets correctly spent on their goal. I've seen people who don't believe this exists, but I know several firsthand (volunteer, not executive). Sadly, they aren't the only kind.
2. Nonprofit entity is run by people who run it for the purpose it was intended for but mostly do it to collect money. They get nice salaries and plenty of perks paid for from the budget. Generally, the goal still runs correctly and gets funded sufficiently, but it could be better. For instance, ICANN.
3. Nonprofit entity is run by people who only want money and start trying to figure out how to extract as much of it now as they can. Whether that harms the programs they're supposed to be running, risks running the organization into bankruptcy, or violates the philosophy under which they were founded, they go ahead if it sounds like they'll get paid enough for doing it. The programs sort of run for now, but can break at any time when they either sell them off or run out of the funds to continue supporting them. For instance, Nominet.