Soundcloud has introduced “fan-powered royalties,” a “fairer and more transparent way for artists to earn money” across the platform.
With most streaming platforms, like Spotify, money from your subscriptions and advertising revenue goes into a giant pool that’s paid out to artists based on their share of total streams. It’s a pro-rata model that’s proven controversial because it doesn’t foster independent music culture.
In contrast, with Soundcloud’s “fan-powered royalties,” monies are paid out according to individual subscriber behaviour. The means your monthly fees are split between the songs you actually listen to, supporting your favorite artists rather than what’s more widely popular. It’s hoped that this will support niche artists and communities.
Under this new model, Soundcloud is “levelling the playing field” for independent artists and allowing fans’ dedicated listenership to directly support the artists they love. It also empowers artists to take more control over their career, because fans will play a more direct role in their success.
“This equitable payout model is what independent artists across the industry have been asking for,” Soundcloud says in a press release, “and as an artist-first platform, we’re excited to be the first music company to roll it out.”
“Fan-powered royalties” go into effect April 1, 2021 for Soundcloud’s Pro Unlimited subscribers in the Premier monetization program and Repost by SoundCloud artists, including those in Repost Select.
For more information on Soundcloud’s “fan-powered royalties,” check here.