SoundCloud's Direct Artist Payments Moves it Closer to Competing with Bandcamp

Photo Credit: Rachit TankSoundCloud is reportedly moving to direct artist payments from fans as its revenue model. It moves the service in close competition with Bandcamp.Currently, SoundCloud uses the ‘pro-rata’ model that is common for most music streaming services. All revenue is pooled and then partitioned out according to who earned the most streams in a given period. That method favors big earners who pull in millions of streams a month.SoundCloud Go+ is a $10/monthly subscription, but again, users don’t decide who to support. There’s also been no way to allow artists to receive tips on SoundCloud. But as British lawmakers are looking at regulating how much music streaming royalties should pay, SoundCloud is changing up its model.Billboard reports that SoundCloud is experimenting with allowing fans to pay artists directly. That would put SoundCloud in much closer competition with Bandcamp, where most indie artists get their start. The change in its streaming payout model is the first big move of SoundCloud’s new CEO, Michael Weissman.The lack of touring throughout 2020 and into 2021 has hurt independent artists immeasurably. Another streaming service with direct artist payments would help alleviate that. SoundCloud stepped up during the pandemic to partner with Twitch to…
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