SoundCloud Fan-Powered Royalties promises ‘more equitable’ payments

SoundCloud Fan-Powered Royalties is a new royalty payment format announced by the music streaming site and it promises a more ‘more equitable and transparent way for emerging and independent artists to earn money on SoundCloud.’

SoundCloud fan-powered royalties is a new model of pay-outs that is driven directly by an artist’s fan base.

With this move, each listeners’ subscription or advertising revenue is distributed among the artists that they listen to, rather than their plays being pooled – benefiting rising independent artists with loyal fans.

As their own examples show, you’re still not going to be able buy a house with a modest 35k fans but for all those who moot Bandcamp as the better alternative for earning money from your music, this is a step in the right direction.

SoundCloud fan-powered royalties explained

“Many in the industry have wanted this for years.

“We are excited to be the ones to bring this to market to better support independent artists. SoundCloud is uniquely positioned to offer this transformative new model due to the powerful connection between artists and fans that takes place on our platform,” said Michael Weissman, Chief Executive Officer, SoundCloud.

“As the only direct-to-consumer music streaming platform and next generation artist services company, the launch of fan-powered royalties represents a significant move in SoundCloud’s strategic direction to elevate, grow and create new opportunities directly with independent artists.”

Level the playing fields

Fan-powered royalties levels the playing field for independent artists by tying pay-outs to fandom.

Artists are now better equipped to grow their careers by forging deeper connections with their most dedicated fans; and, in turn, fans can directly influence how their favourite artists are paid.

Fan-powered royalties reflect feedback from the independent artist community on SoundCloud who want equitable pay-outs, transparency, and control over their own careers.

The nearly 100,000 independent artists monetising directly on SoundCloud through SoundCloud Premier, Repost by SoundCloud or Repost Select will benefit from fan-powered royalties beginning on April 1, 2021.

The roll-out of fan-powered royalties is backed by an extensive artist education campaign and direct, ongoing outreach with the independent artist community and industry partners.

SoundCloud Fan-Powered Royalties promises ‘more equitable’ payments