In an industry-first move, SoundCloud is introducing what it calls “fan-powered royalties” – its own branding of the user-centric model – which it says will mean “each listener’s subscription or advertising revenue is distributed among the artists that they listen to, rather than their plays being pooled”. ![]() SoundCloud is about to settle this debate once and for all. On the other side of the coin, some studies have suggested that a switch to user-centric licensing would incur cumbersome administrative costs for services, and even that such a move might not make a material difference to those it’s most designed to help – so called “middle class” artists who might not boast a blockbuster global fanbase, but who draw a significantly-sized loyal audience that streams their music regularly. This, in turn, risks triggering market manipulation, either by artists/songwriters creating deliberately short songs (in order to maximize repeated plays) or even in the form of streaming fraud via paid-for stream farms. ![]() What’s more, ‘pro rata’ risks turning streaming into a game where only the artists with the most repeated plays across a given month win big. ![]() The latter model, obviously enough, most benefits global pop superstars the former model, it’s thought, would bring more benefit to indie artists and to more niche genres such as classical and jazz.Ĭritics of the ‘pro rata’ model point out that it regularly leads to a proportion of an individual’s subscription fee being paid to artists whose music they haven’t even played.
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