Soundcloud is known to be a unique streaming service made for independent artists starting their music careers. And, recently, they have found ways to appreciate their new artists. Just last year, according to musicbusinessworldwide, Soundcloud launched it’s first ever “Fan-Powered Royalties platform”. The system consists of “Royalties”, which is monetization, that users pay monthly for. The money goes directly to the user and artist they follow.
The streaming service is against more “big-pot” Royalty platforms- “which sees all royalty revenue paid/generated by users centrally pooled by a service, before being shared on the basis of artist market share across an entire platform”, according to musicbusinessworldwide, similar to Spotify’s and Patreon’s-which is used by many current Youtuber’s.
It has now been a full year since the recent plan for independent artists, as SoundCloud has celebrated by giving current stats on their new project. Just last week, April 26, SoundCloud has announced that a whopping 135,000 artists are now being paid by using the new monetizing platform. This has also made artists who used the system since March of 2021 to grow their careers by 30%. SoundCloud has also gone on to celebrate that users of the system are making 60% more money then they would have made by using the traditional fan paid service. According to SoundCloud, the money goes into a giant pool, which distributes the money depending on how many views the artist gets. Meaning the more popular artists receive more money.
The new system also allowed alternative band Portishead to earn 500% more.
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