Anyone know what the Royalty allocation system of Spotify is?

I wondered if a voluntary fee, paid with ISP access as a kind of insurance policy against kids illegally downloading music and movies (possibly software and books too), would bring more in for artists then what Spotify bring in. Lady Gaga only received. Report: Spotify Paid Lady Gaga $167 for 1 million plays. Spotify's royalty allocation seems not very transparent as to how the royalties get divvied, but hey, I guess the Labels signed up to it so everyone's happy. Cool. oh yea, Radio 1 in the UK pay loads of money for plays, I can't figure out if Spotify is disruptive to Radio, or just a total waste of time for everyone, especially artists and labels. I guess Li Ka Shing being an investor rather then a non profit driven backer similar to PPL and PRS could be an issue, as well as the private investors profiting out of its recent $13bn valuation. I don't think in the USA the RIAA are worth that much, but Larry Kerzwil might disagree. But hey they're a trade organisation so maybe aren't as motivated by profit margins and sky high valuations as private investors.