Are Music Streaming Companies Finally Ready To Change The Way They Pay Artists?

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In a first of its kind move, music streaming platform SoundCloud is launching a new 'fan-powered' revenue structure that seeks to bolster payments to indie artists.

But with physical music sales long in the rear view, streaming remains the biggest game in town. It’s heartening, then, that there are signs that the way artists are compensated is beginning to evolve, albeit not yet among the ranks of streaming’s biggest players.

In contrast to the conventional model where royalties from streams go into a pool that's paid out to artists based on their share of total streams, the new system will pay out artists based on their fans' listening habits. The more fans listen to a musician’s music, the more that musician gets paid. All independent artists who monetize directly with SoundCloud are eligible to partake in the new model.

SoundCloud is the first in the music-streaming world to shake up the revenue structure. “Many in the industry have wanted this for years. We are excited to be the ones to bring this to market to better support independent artists,” said SoundCloud CEO Michael Weissman.

 

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Well, is the industry ready to change how they sell licenses and distribute the money? Buying the correct license is just a mess and often impossible...

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