SoundCloud will introduce a new streaming payout system by launching a ‘fan-powered royalties’ model set to benefit emerging independent artists with a loyal fanbase.
As it stands, platforms such as Spotify and Apple Music offer a ‘Pro Rota’ system that sees royalties paid out at the end of each payment period according to each contributor’s market share of total plays across the platform.
In a bid to try and win the direct business of independent artists distributing elsewhere, this move is the driving force behind SoundCloud’s marketing plan to make this happen.
Soundclouds Cheif Executive Officer, Michael Weissman said: “Soundcloud is uniquely positioned to offer the transformative new model due to the powerful connection between artists and fans that takes place on our platform.”
Although SoundCloud recognise this as an experiment, hopefully this will be healthy for the smaller artists deserving the revenue!