Under SoundCloud’s new model independent artists benefit.

Come the first of April SoundCloud will launch a fan-powered royalties program to benefit independent artists. 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.

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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.

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For eligibility, independent artists who monetize directly with SoundCloud are the ones who are eligible. These artists include Pro Unlimited subscribers in the Premier Program, Repost by SoundCloud subscribers and members of Repost Select.

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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.

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Royalties are paid based on what portion of a fan’s time they listen to each artist.

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