[iamsanteri]

To answer your question, they pocket it back by paying it to themselves. The artist is only formally an external ”artist”, but in this case he’s essentially one of their own. They curate him, let him on all the most promoted playlists and keep an appearance as if they’re paying it to some artist just like they do to anyone else. That artist gets all this firepower by agreeing to keep less of the cut while paying more of it back to Spotify in some other ways and it is all kept under the radar. That’s what I suppose.