Preparing SoundCloud to introduce a new payment system that would allow fans to pay artists directly, which could set a precedent for changing the rules of the game in the world of broadcasting.
The move makes SoundCloud the first major music streaming service to adopt a direct payment model, a strategy that has been popular with Chinese streaming services, such as Tencent Music’s QQ Music years ago.
It also makes it a subscription service like: Patreon and OnlyFans, which has built its business around payment, with musicians and fans around the world demanding that the largest digital music distributors do the same.
The platform is still exploring several alternative payment models, and it may announce its plans before the end of the first quarter of 2021.
The new paradigm is supposed to represent a major shift for the SoundCloud platform, which currently uses the same method used by all major broadcasting services of distributing profits to the artists who brought in the most broadcasts.
The model pays for the world’s most famous works, but makes it difficult for young indie artists to earn anything from broadcast.
The platform’s 175 million monthly users now have the option to pay up to $ 10 per month for the company’s streaming on-demand service called SoundCloud Go +.
But subscriber payments aren’t distributed to artists based on who they listen to personally, and subscribers also can’t tip or direct subscription fees toward their favorite works.
SoundCloud can test the new payment model without approval from major record companies.
The live streaming service has focused on artist services recently, as it launched its marketing and distribution platform for the so-called indie artists Repost Last April after it acquired a rights management company and distributed Repost Network in 2019.
Repost platform allows artists to invest music through the platform, distribute it, and collect revenue from major broadcast services such as Spotify, Apple and TikTok, as well as offering promotional tools, for $ 30 annually.
This plan allows artists to keep 100 percent of their SoundCloud revenue and 80 percent of the revenue from other platforms.
The move to explore alternative payment models comes just months after Michael Weizmann took over. Michael Weissman As CEO of SoundCloud.