Streaming giant SoundCloud is allegedly creating a new transactional plan that permits fans to pay artists directly. The alternate plan would mark the platform as the first major music streaming service to follow a talent-based payment model.
The streaming payout strategy is not new in the market; it has been made popular by other streaming platforms like Tencent Music’s QQ Music and subscription services like OnlyFans and Patreon that have largely built their business models around the above-mentioned payment system.
If SoundCloud does implement the change, the new model will work as a paradigm shift for the company. The service currently works on a “pro-rata” model, where artists are paid concerning who brought in the most streams. Most major streaming services like Spotify, Apple Music utilize this method.
The latest structural update comes from the recent call for more transparency of streaming services towards artists and creating a more “user-friendly” payment model. Unlike other major streaming services, SoundCloud has the potential to explore the new payment system without receiving a warning or gaining approvals from major record companies.
The upcoming changes to the payment model mark the first big decision from Michael Weissman, the new CEO of SoundCloud. Under his leadership, SoundCloud has enlarged its focus-tropic outside of the music industry, recently announcing SoundCloud Player One for a live-streaming gaming competition within Fortnite that will feature eight SoundCloud artists.
Stay in the know with the latest culture news