SoundCloud may let fans directly pay their favourite musicians. How will this change the way we stream our music?
SoundCloud is rumoured to be experimenting with a new payment scheme that will create a unique artist-audience relationship and support financially support musicians amid the COVID-19 pandemic.
Streaming platforms, including Apple Music and Spotify use a ‘pro-rata’ system. ‘Pro-rata’ models divvy up revenue and distribute it among artists who drive the bulk of the world’s streams. This method tends to reward major musicians who dominate these platforms. However, this new model could allow fans to funnel their money specifically, and only, to the artists they listen to.
SoundCloud is a major streaming platform, and this alternative payout model could totally change the way we listen to our music. As the model is more user centric, users will experience higher artist-audience engagement.
This could generate hype for emerging or lesser known musicians who are beginning to create a fanbase. As well as this, more streamlined monetary support will bolster musicians who may have been majorly affected by COVID-19.
While SoundCloud is yet to confirm the scheme, reports revealed that more information will be announced mid-2021.