Their new “fan-centric royalties” will pay out based on fan listening times rather than ‘pro rata’
SoundCloud is introducing user-centric royalties for artists using its platform. As SoundCloud describe it, “under the old model, money from your dedicated fans goes into a giant pool that’s paid out to artists based on their share of total streams.” That means, just like Spotify and other streaming platforms, a portion of my subscription fee or ad revenue will end up in the pockets or artists I have never listened to.
“With this move, each listener’s subscription or advertising revenue is distributed among the artists they listen to, rather than their plays being pooled – benefiting rising independent artists with loyal fans.
It’s a big move and huge news for independents who have built a loyal fanbase but don’t get the numbers of the megastar artists who are benefitting most from the old model. SoundCloud has built a microsite to explain more and demonstrate some real-world examples of the new model. In it, they explain Vincent with 124,000 followers previously made $120 a month under the old model, now makes $600. Alternatively, Chevy’s account sees rates increase by 217%. Artists will be able to access the new model from April 1st. Find out more here.