SoundCloud is introducing a new revenue model to pay indie artistes. The streaming platform’s latest revenue model is called “Fan-powered royalties.”
With this model in place, SoundCloud will Be paying artistes who hosT their music on the site based on fans’ aggregated listening time. In other words, the more fans listen to an independent artiste’s music on SoundCloud, the more money the artiste makes.
In a statement, SoundCloud noted that the model will benefit independent artistes as well as empower fans to play a vital role in the success of their faves. It ended up saying the model will encourage the rise of new genrs in music.
The shift in revenue model by SoundCloud comes amid criticisms that the revenue structures of other streaming platforms favour established artistes signed to major record labels.
By the way, the new revenue move is not in force yet. It will be in place beginning next month, April. The announcement of the new revenue model elicited mixed reactions. Apparently most indie artistes are okay with it and looking forward to its enforcement.
What do you think of SoundCloud’s new revenue model? You may want to join the conversation by dropping your thoughts in the comment section below.
