SoundCloud introduces fan license charges

Payouts from streaming services have been a contentious issue for years – how does it work? How does it get fairer? Where does the money come from and where is it going? SoundCloud aims to become more transparent with their artist payouts by introducing a system of fan license fees.

At its core, it really seems like a no-brainer, and that makes the shift a little confusing because it really is that simple.

SoundCloud continues: “According to the old model, your dedicated fans’ money goes into a huge pool that is paid out to artists based on their share of the total streams. This model mainly benefits megastars.

“With fan-operated royalties, you are paid based on the actual listening habits of your fans. The more time your dedicated fans listen to your music, the more you get paid. This model benefits independent artists. “

Fan license fees will replace the old model from April 1, 2021.

Premier artists will receive their first declaration in May 2021 as Premier goes through a 45 day payment cycle. Repost artists will receive their first declaration in June 2021 as Repost has a payment cycle of 60 days.

To learn more about fan royalties, visit fanpoweredroyalties.com.

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