How Does SoundCloud's Fan-Powered Royalties Work?
What are fan-powered royalties?
Fan-powered royalties are a more equitable and transparent way for independent artists who monetize directly with SoundCloud to get paid. Instead of money going into a giant pool that benefits mega stars, fan-powered royalties ensure that artists are paid based on their fans' actual listening habits. The more time your fans spend listening to your music, the more you get paid.
Who is eligible for fan-powered royalties?
Independent artists who monetize directly with SoundCloud are eligible for fan-powered royalties. This includes artists who are part of the SoundCloud Premier Program and those who use SoundCloud for Artists via Next Plus or Artist Pro subscriptions.
When did fan-powered royalties start?
Fan-powered royalties replaced the old model on April 1, 2021. Premier artists received their first payment statement in May 2021, as Premier runs on a 45-day payment cycle. Next Plus and Artist Pro subscribers, who monetize via SoundCloud for Artists, received their first statement in June 2021.
Why is the fan-powered royalties model considered fairer than the industry norm?
The fan-powered royalties model is fairer because it distributes each listener's subscription or advertising revenue among the artists they actually listen to, rather than pooling all revenue together. This system benefits independent artists and allows fans to have a greater impact on the success of their favorite artists, promoting the growth of local scenes and emerging genres.
How do fan-powered royalties work?
Fan-powered royalties are calculated based on the portion of time a fan spends listening to each artist. The total money generated by a fan is influenced by:
- How much time the fan listens to an artist compared to their total listening time in a given month.
- The number of advertisements the fan has consumed.
- Whether the fan has a paying subscription to SoundCloud Go+.
This model benefits independent artists with dedicated fanbases who frequently listen to their music.
How do fan-powered royalties address fraud?
Fan-powered royalties minimize fraud by tying royalties directly to the contributions made by real listeners. Unlike pooled royalties, which can be gamed by bots or vanity accounts, fan-powered royalties are distributed based on actual listener activity. This means that only legitimate fan interactions contribute to an artist's earnings.
How can I qualify for fan-powered royalties?
To qualify for fan-powered royalties, you can monetize your music by joining SoundCloud for Artists. Both Next Plus and Artist Pro subscriptions give you access to the SoundCloud for Artists dashboard, where you can distribute your music to major music services. There are no specific eligibility requirements for monetizing and distributing with SoundCloud for Artists.
SoundCloud Premier users can also monetize under the fan-powered royalties model. However, new Premier contracts are no longer available. Existing Premier users will remain in the program unless they opt out. For continued monetization and distribution, it is recommended to subscribe to Next Plus or Artist Pro.