German music streaming service SoundCloud is the first of the major audio streaming platforms to change its content monetization model: now musicians are paid for the frequency of listening.
Previously, the service distributed the money of paid subscribers in proportion to the share of streams of one or another artist from the total number of streams of all artists. But with this approach, a significant amount of money went to top musicians, even if a particular paid subscriber did not listen to them. Other major streaming services now operate under a similar royalty calculation model, including Spotify, Deezer and Apple.
SoundCloud considered that under such rules, lesser-known artists could not develop on the platform. Therefore, now musicians on the platform receive money depending on the number of subscribers and the time they listen to content. In this way, fans will begin to have a stronger influence on the success of an artist or label.
So, according to the service, a musician with 124,000 subscribers, after the introduction of new rules, earns $600 per month on the platform instead of $120, as it was before.
The traditional model of content monetization has allowed major labels to earn record amounts for 2021, while many other musicians have suffered a crisis due to the cancellation of concert tours amid the coronavirus pandemic.
In the music industry, the SoundCloud streaming service is considered a very good place to make money. Since this platform has some functions of a social network, the promotion of your content can be organized according to rules that are understandable to many, as well as independently influence its popularity. In most cases, other streaming platforms do not have such an opportunity.
The amount of royalties paid will be in the range of $0.0025 to $0.004 per listening. So for every one thousand plays you get between $2.50 and $4.00.
Any artist, especially those starting their musical career, should not concentrate their efforts entirely on SoundСloud. Why? It’s only worth it if you have several hundred thousand plays per month. Otherwise, your income (including hosting deductions) will be very minimal and not worth the effort. While you can earn $30 for, say, 10,000 monthly streams, you have to factor in the cost of hosting and the time you invest in your music.
It is also necessary to remember that the minimum number of streams of one thousand will not lead to monetization, since there is a minimum threshold of 5000 streams to start it. And the minimum amount on the artist’s account should not be less than $5.