A new payment plan launched at SoundCloud that allows fans to directly pay artists is reportedly in the works. The alternate plan would allow the platform to be the first major music streaming service to follow a straightforward payment model.

The streaming payout strategy is not new, as other streaming services like Tencent Music’s QQ Music, and subscription services like OnlyFans and Patreon have heavily built their business models around the payment system. Currently, the service uses a “pro-rata” model, where artists are paid depending on who brought in the most streams. Most major streaming services utilize this method.

SoundCloud recently launched its on-demand streaming service SoundCloud Go+, where users have to pay up to $10 USD a month to listen. However, the payment does not directly go to the artists fans listen to, and users are unable to “tip or steer their subscription fees toward their favorite acts.”

This marks the first big move from Michael Weissman, the new CEO of SoundCloud, who is bringing these upcoming changes to the payment model. SoundCloud has expanded its focus outside of the music industry, recently announcing SoundCloud Player One for a live-streaming gaming tournament within Fortnite that will feature eight SoundCloud artists.

Posted by:Staff

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