SoundCloud is launching a brand new payment system for artists which will direct their subscriber payments to the artists that they listened to as opposed to being grouped in with every artist on the platform.
The culture of music streaming is changing, and it is starting with SoundCloud. SoundCloud has announced a brand new fan-driven royalty distribution system that will help smaller artists compete with the industry’s biggest stars. Under SoundCloud’s newly announced payment system, advertising revenue will go directly to the artist who they listen to as opposed to overall plays that are being pooled from every artist on SoundCloud. This new method of payment will apply to independent artists who are not signed to major record labels.
SoundCloud’s new payment method will take effect starting on April 11. SoundCloud states that this new method of payment will be, “A more fair and transparent way for artists to earn money on SoundCloud.” Under this new system, SoundCloud will be leveling the playing field amongst smaller artists and superstars by empowering fans to support the artist they love. On SoundCloud’s Instagram announcement, the company states that “The money made from dedicated listeners goes directly to the artists they listen to.” This new payment system will ultimately help smaller artists grow both their revenue streams and their careers by empowering fans and as SoundCloud states, “Artists deserved to be paid fairly.”
When asked about the newly establish payment system, SoundCloud CEO Michael Weissman stated,
“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. 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.”
It will be intriguing to see how this new payment system helps propel smaller artists and how it will impact the music industry as a whole.
SoundCloud’s new payment system is set to take effect starting April 11.
Feature Photo – James Bareham
