Artists who monetize from SoundCloud will be able to enjoy a brand new fan-powered payout method innovated by Soundcloud themselves beginning in April.
Fan-powered Royalties is the new way SoundCloud plans to payout artists who use their monetization features. They explain it as a more “equitable” and “transparent” way for independent artists to get paid. “The more fans listen on SoundCloud, and listen to your music, the more you get paid,” said the platform.
This is SoundCloud’s newest system designed to pay more artists fairly and create more full-time musicians.
Before this new model, payout was divided up from a giant pool of money that was later paid out based on artists share of total streams. It was a model that as SoundCloud described, “mostly benefits mega stars.”
However, now artists are going to be paid directly based on fans’ actual listening habits. A model meant to benefit independent artists.
On their page they noted two artists, Chevy and Vincent who both saw an outstanding increase in payout after switching to Fan-powered Royalties.
Last year, SoundCloud introduced Repost, a new avenue for artists to spread their music to major streaming platforms, gaining a wider audience. It would seem Fan-powered Royalties are yet another way SoundCloud is trying to innovate their systems in order to better support their massive independent user-base.
Fan-powered Royalties will begin rolling out April 1st, 2021.