SoundCloud is introducing user-centric royalties for artists that use its platform.
The new system means that royalties will be paid out based on fan listening times, a move away from the ‘pro rata’ model used by streaming platforms like Spotify. "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," SoundCloud says, whereas now, "each listener’s subscription or advertising revenue is distributed among the artists they listen to." The company says this will benefit rising independent artists with loyal fans.
The move was first teased last month, when it was reported that SoundCloud was considering new models that would allow fans to pay artists more directly. You can read SoundCloud’s breakdown of the new model here.
