How To Make A Lot Of Money On SoundCloud?

The opportunity to make money on music streaming attracts many artists. It may sound surprising to many, but every four out of five dollars of income in the music industry is generated by music streaming services. Therefore, their importance is difficult to overestimate.

SoundCloud will be the first streaming service to pay artists based on their actual number of listeners. Musicians on streaming platforms earn pennies.

So for some time now, artists from all over the world have been officially demanding that Spotify, Tidal and other streaming giants treat royalties more fairly. To illustrate the scale of the problem, it is enough to give figures:

  1. Spotify pays the artist 0.004 US cents per song play;
  2. YouTube – 0.00069 US cents per view;
  3. other streaming services are no better – Apple Music pays 0.007 cents;
  4. Tidal – 0.012 cents.

It turns out that for a million views of one song, a group or an individual artist receives some $4000 from Spotify. It doesn’t help that, according to research by analytics firm Alpha Data, 90% of the music played on Spotify comes from just 1% of artists, leaving only this narrow elite of music streaming to make any reasonable money.

When billionaire Spotify CEO Daniel Ek advises artists to simply record more and release a few albums a year, another music service, SoundCloud, is reaching out to creators to help them.

We are talking about so-called fan royalties, which means no more and no less than that subscription fees or advertising revenues will be fairly and proportionally distributed among the creators who are really listened to, and not go into one big pool, from which the money is then divided among the most popular performers.

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SoundCloud will pay more to artists than other music streaming services

Independent artists, that is, those who most need support, will benefit from the changes. While, for example, Spotify counted how many streams were in a given country, and then determined how much of these streams were directed directly to a particular creator, smaller artists, without sufficient coverage, earned the least, because they represented a much smaller part of the total streams. The model proposed by SoundCloud reverses this situation.

How will SoundCloud’s new operating model affect musicians’ earnings? Under the old billing rules, the musician was making $120 a month, but thanks to “fan fees,” he was getting up to $600. So the difference is significant. This is just an example for understanding proportions.

So far, SoundCloud has not yet signed contracts with major labels such as Sony, Universal or Warner, and it is not yet known if this will happen at all. Time will also tell if other streaming platforms are willing to follow in SoundCloud’s footsteps, or are willing to follow the existing rules and simply make more money.

If we want musicians to make decent money and not be exploited by big corporations, we need to give SoundCloud a chance and support it in its attempts to change the rules of the game in the streaming platform market.

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