Soundcloud’s new royalty model

Soundcloud announced today its new ‘fan-powered royalties’ model. Unlike the current industry model which pools revenues and pays based on total number of streams, the new fan-powered model distributes royalties based on revenue from fans/users directly to the artists that they streamed. Prior to reading about this I was not aware that there was such a large gap in royalties paid between the two models. I was also surprised and saddened to learn that streaming services was not paying on a per-stream basis already (Spotify pays royalties calculated from percentage of streams out of total global streams), which results in niche and indie artists being at a disadvantage.

Here is an article which goes into more depth:

Here is the official page on Soundcloud’s website:

This article discusses the issue of royalties in streaming services, with a focus on Spotify:

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