I recently saw this medium post linked on The Loop, and at first I thought "sure, this is a major issue, but, on the other hand, it seems pretty fair to be paid by the number of plays, that's what streaming means; I can't see any another way", but eventually I reached the part where he offers a solution; and I think it's perfect:
The premise behind Subscriber Share is simple: the only artists that should receive your money are the artists you listen to. Subscriber Share simply divides up your $7 ($10 per month, -30% service fees) based on how much time you spend listening to each artist. So if you listen to an artist exclusively, then that artist will get the entire $7, but if you listen less they get proportionately less. As an example, if you listen to Alt-J 25% of the time, then Alt-J would get $1.75 ($7.00 * 25% = $1.75). Let’s compare this with the Big Pool: if you typically stream 200 streams per month (that’s roughly 13 hours of streaming), then playing Alt-J 25% of the time would equal 50 streams. Since each stream gets a flat $0.007 per stream, the band will recieve just 35 cents. (50 * $0.007 = $0.35).
I hope the music industry will adopt this, it just feels right.