SoundCloud is about to revolutionize streaming payouts, launching user-centric royalties for 100,000 indie artists

[snoop1130]

SoundCloud is about to revolutionize streaming payouts, launching user-centric royalties for 100,000 indie artists

BY TIM INGHAM

 

 

One of the most hotly-debated concepts in the modern music rights business is user-centric licensing. This model sees streaming royalties paid out based on individual subscriber behavior – with a percentage of each subscriber’s subscription fee being distributed only to the artists/labels they have individually listened to that month.

 

This model is in contrast to the current ‘pro rata’ streaming payout system, which sees all royalties on a service like Spotify pooled at the end of each payment period… after which recorded music rights-holders are paid according to their market share of total plays across the platform.

 

Full Story: https://www.musicbusinessworldwide.com/soundcloud-is-about-to-revolutionize-streaming-payouts-launching-user-centric-royalties-for-100000-indie-artists/

[onebir]

5 minutes ago, snoop1130 said:

One of the most hotly-debated concepts in the modern music rights business is user-centric licensing. This model sees streaming royalties paid out based on individual subscriber behavior – with a percentage of each subscriber’s subscription fee being distributed only to the artists/labels they have individually listened to that month.

 

This model is in contrast to the current ‘pro rata’ streaming payout system, which sees all royalties on a service like Spotify pooled at the end of each payment period… after which recorded music rights-holders are paid according to their market share of total plays across the platform.

Don't both these processes result in similar payments??

Edited March 3, 2021 by onebir

[rbkk]

4 hours ago, onebir said:

Don't both these processes result in similar payments??

No. An example Soundcloud used was of an artist that had 124,000 fans on their platform. Previously he would have earned 120 ($/Eur ?) per month but from April this would rise to 600. A 500% increase. 10% of the total "Pro Rata" royalties is given to just 10 artists at the top of the food chain. This seems a lot fairer and will hopefully allow for more musical diversity.

[onebir]

12 minutes ago, rbkk said:

No. An example Soundcloud used was of an artist that had 124,000 fans on their platform. Previously he would have earned 120 ($/Eur ?) per month but from April this would rise to 600. A 500% increase. 10% of the total "Pro Rata" royalties is given to just 10 artists at the top of the food chain. This seems a lot fairer and will hopefully allow for more musical diversity.

I think I need this in equations to understand it ????