Earlier this year, reports surfaced that SoundCloud was exploring a new payment system that would allow music fans to pay artists for their work directly on the platform. Now, the company has announced a new “fan-powered” royalty distribution system that aims to level the playing field for independent artists. Under the new system, which goes into effect on April 1, money from a listener’s subscription as well as advertising revenue will go directly to the artists they listen to “rather than their plays being pooled,” according to a press release.
“Many in the industry have wanted this for years,” SoundCloud’s new CEO Michael Weissman said in a statement. “We are excited to be the ones to bring this to market to better support independent artists. SoundCloud is uniquely positioned to offer this transformative new model due to the powerful connection between artists and fans that takes place on our platform.
He added: “As the only direct-to-consumer music streaming platform and next generation artist services company, the launch of fan-powered royalties represents a significant move in SoundCloud’s strategic direction to elevate, grow and create new opportunities directly with independent artists.”