SoundCloud To Explore Direct Fan to Artist Payment System

The new system would focus on a user-centric platform.

SoundCloud is working toward a new streaming experience which entails a direct payment system between fans and artists. A major step, the new plan would make SoundCloud the first major streaming platform to follow the direct payment model.


Services like OnlyFans and Patreon already use this straightforward payment system, unlike streaming services such as Spotify and SoundCloud currently, which adhere to a “pro-rata” model where fans pay the service rather than the artist, and artists are in turn paid by the amount of streams they bring in.  


If SoundCloud adopts the new model, it will embark  a new phase for the company. They recently launched SoundCloud Go+, an on-demand streaming service for $10 per month, where payment does not currently go directly to artists and users cannot provide tips for artists. 


SoundCloud’s proposed new model is a response to a call for more fairness and transparency in streaming services, adopting a model centering on the user rather than the streams. As a platform known for being host to a plethora of unsigned artists and developing talents, they are able to explore this new model without needing approval from large record companies and producers. 


The proposed changes are the first major move by the new CEO of SoundCloud, Michael Weissman, who is focusing on expanding SoundCloud’s reach beyond the music industry.

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