BIG NEWS: SoundCloud is Paying Independent Artists More Fairly
Today SoundCloud introduces fan-powered royalties — a fairer and more transparent way for artists to earn money on SoundCloud. Under this game-changing model, SoundCloud claims they are leveling the playing field for independent artists and allowing fans’ dedicated listenership to directly support the artists they love.
With fan-powered royalties, money made from listeners goes directly to the artists they listen to. This equitable payout model is what independent artists across the industry have been asking for, and as an artist-first platform; SoundCloud is excited to be the first music company to roll it out.
Fan-powered royalties go into effect April 1, 2021 for SoundCloud Pro Unlimited subscribers in the Premier monetization program and Repost by SoundCloud artists, including those in Repost Select.
Learn how it all works
SoundCloud pays artists fairly
SoundCloud is the first music company to introduce fan-powered royalties, where independent artists can get paid more because of their dedicated fans.
Tell your fans
How streaming services pay artists today
Money from your dedicated fans goes into a giant pool that’s paid out to artists based on their share of total streams. That model mostly benefits mega stars.
How fan-powered royalties work
You get paid based on your dedicated fans’ actual listening habits. The more fans listen on SoundCloud, and listen to your music, the more you get paid.
SooundCloud values equitable payouts
Fan-powered royalties level the playing field so independent artists can compete.
SoundCloud is transparent in how artists get paid
Your payouts are based on a fan’s overall listening time. The fans you see in your insights dashboard are the fans who are contributing to your royalties.
SoundCloud gives artists control
Forge a deeper connection with fans who support your growth.
SoundCloud honors real fans
You’re paid by actual fans who stream your music. Bots and fake plays don’t count.
“It’s such a simple idea. Your monthly fees get split up between the songs you actually listen to.”
— RAC, musician and producer
Fan-powered royalties empower you to take more control over your career. Your fans play a bigger, more direct role in your success.
How much Vincent makes under the old industry payout model
How much Vincent makes under fan-powered royalties
With fan-powered royalties, Chevy’s monthly payout increases by
Independent artists who monetize directly with SoundCloud will benefit from fan-powered royalties beginning April 1, 2021.
Fan-powered royalties are a more equitable and transparent way for independent artists who monetize directly with SoundCloud to get paid. The more fans listen on SoundCloud, and listen to your music, the more you get paid.
Under the old model, money from your dedicated fans goes into a giant pool that’s paid out to artists based on their share of total streams. That model mostly benefits mega stars.
Under fan-powered royalties, you get paid based on your fans’ actual listening habits. The more of their time your dedicated fans listen to your music, the more you get paid. This model benefits independent artists.
Who is eligible for fan-powered royalties?
Independent artists who monetize directly with SoundCloud are eligible for fan-powered royalties. These artists include Pro Unlimited subscribers in the Premier Program, Repost by SoundCloud subscribers and members of Repost Select.
When does fan-powered royalties roll out?
Fan-powered royalties will replace the old model beginning April 1, 2021.
Premier artists will receive their first statement in May 2021, as Premier runs on a 45-day payment cycle. Repost artists will receive their first statement in June 2021, as Repost runs on a 60-day payment cycle.
Why is the fan-powered royalties model a fairer system than the industry norm?
Fan-powered royalties are a more equitable and transparent way for independent artists to get paid. With fan-powered royalties, each listener’s subscription or advertising revenue is distributed among the artists they actually listen to, rather than being pooled. This new model benefits independent artists and empowers fans to play a larger role in the success of their favorite artists. It also encourages the growth of local scenes and the rise of new genres.
How do fan-powered royalties work?
We pay royalties based on what portion of a fan’s time they listen to each artist. The total amount of money generated by a fan for the artists they listen to is based on a few factors:
How much the fan listens to that artist relative to all of their listening time in a given month
How many advertisements the fan has consumed
Whether the fan has a paying subscription to SoundCloud Go+
Fan-powered royalties benefit independent artists whose fanbases are dedicated to listening to their music frequently. So if a fan only listens to an early-stage rapper from Detroit or an emerging singer from France, most or all of their subscription or advertising revenue will go to those exact artists.
How can I qualify for fan-powered royalties?
Artists can participate automatically in fan-powered royalties in three ways:
SoundCloud Premier: Premier is our monetization program for Pro Unlimited subscribers. Artists will be notified and prompted to join once they become eligible to monetize. Click here for Premier eligibility requirements.
Repost by SoundCloud: Repost by SoundCloud is for artists who want to reach fans everywhere by distributing their music to every major music service. There are no eligibility requirements to monetize with Repost by SoundCloud. You can subscribe to Repost by SoundCloudhere.
Repost Select: While there are no eligibility requirements to monetize with Repost Select, it’s a program open to select Repost by SoundCloud subscribers via application or invitation only. Click here to apply or learn more.