It’s been reported that SoundCloud recently announced that it is introducing a new way to pay independent artists that host music on the popular site. This new revenue structure is called “fan-powered royalties,” and will be paying artists that monetize directly with SoundCloud based on their fans’ overall listening time. So the more fans listen to your music on SoundCloud then the more money you’re going to get.
Some critics have also been reported saying that the revenue structure at other major streaming services such as Spotify favor bigger artists signed to major labels instead of independent artists so this SoundCloud “fan-powered royalties” system will be striving to boost independent artists on its site.
“This new model benefits independent artists and empowers fans to play a larger role in the success of their favorite artists,” SoundCloud continued. “It also encourages the growth of local scenes and the rise of new genres.”