SoundCloud to Become First Music Platform With 'Fan-Powered' Artist Payments
German-based SoundCloud music platform said on Tuesday it introduced a new payment system under which independent artists will gain royalties based on the number of their actual listeners, thus the funds that users pay for a subscription will be equally divided among the artists they listen to.
"Today we're introducing fan-powered royalties — a more fair and transparent way for artists to earn money on SoundCloud … With fan-powered royalties, the money made from dedicated listeners goes directly to the artists they listen to, so it benefits rising independent artists," SoundCloud wrote on Twitter.
The music platform added that independent artists had been calling for the introduction of such a payment system for a long time, and the Sound Cloud became the first to adopt it.
"Fan-powered royalties are what independent artists across the industry have been asking for -- and as an artist-first platform, we're excited to be the first music company to roll it out," SoundCloud said.
According to its website, SoundCloud is considered to be the world's largest music platform that enables its users to upload, share and listen to music compositions.