Payouts from streaming services have been a divisive topic for years — how does it work? how does it become more equitable? where does the money come from and where does it go? SoundCloud is aiming to become more transparent with their artist payouts by introducing a system of fan-powered royalties. At its core, it really seems like a no-brainer and that’s what makes the shift a little confusing, because it really is that simple. SoundCloud explains further, “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 model mostly benefits mega stars.
“Under fan-powered royalties, you get paid based on your fans’ actual listening habits. The more of their time your dedicated fans listen to your music, the more you get paid. This model benefits independent artists.”
Fan-powered royalties will replace the old model beginning April 1, 2021.
Premier artists will receive their first statement in May 2021, as Premier runs on a 45-day payment cycle. Repost artists will receive their first statement in June 2021, as Repost runs on a 60-day payment cycle. To learn more about fan-powered royalties visit fanpoweredroyalties.com.