SoundCloud has kind of always been the go-to music app for underground music from rappers and DJs. April 1st may change the game entirely for the future of this app, as SoundCloud is set to be the first music app pay artists through “fan-powered” royalties.
This new, unprecedented “user-centric model” would ultimately empower both listeners and the artists, as SoundCloud will start directing royalties due from each subscriber to only to the artists that they stream. This means that fans are able to have a direct influence on how their favorite artists are paid, developing an even deeper connection between them!
Streaming services like Spotify and iTunes pay out royalties based on which artists have the most global plays, leaving up-and-coming artists or artists of more niche genres being left with almost nothing in comparison. Even recently Spotify started talk of reducing royalty rates for artists in exchange for more promotion, which is hardly a fair trade-off when royalty rates are already lower than $1 per stream, catering to the success of megastars. It’s entirely unfair, and hopefully SoundCloud sets a strong example and paves the way for the future of artist compensation. It’s honestly revolutionary!
“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,” said Michael Weissman, SoundCloud‘s CEO, in a statement.