A revolution in payments in the streaming music wants to boost Warner Music Groupwhich reported that it will allow “every artist on your roster” to receive payments for streams on the platform through the fan-driven model in the style soundcloud.
What this means: A band that secured 55 percent of listening to a paid account during a given month would receive 55 percent of their post-fee subscription payment, for example.
This contrasts with Spotify which calculate artist compensation by pooling revenue together and then distributing it as a portion of overall streams.
Addressing the deal in a statement, Warner Music Group Chief Digital Officer and Executive Vice President of Business Development Oana Ruxandra said: “The evolution of the music industry brings new ways to create, consume and monetize. As the ecosystem expands, WMG is focused on advancing and experimenting with new economic models to ensure opportunities for our artists and their communities are maximized. SoundCloud has been an incredible partner in connecting artists and fans, deepening our relationship will allow us both to proactively build for the future.”
And SoundCloud president Eliah Seton added in part: “Today’s deal is an important milestone because, under fan-driven royalties, more artists get paid more money. But even more importantly, Fan-Powered paves the way for artists to create even more opportunities to monetize their art beyond streaming and create more value, driven by engagement with their fans.
“Warner Music Group is known for developing some of today’s biggest superstars and helping them build long-term careers by investing in technologies and models that grow and support their fan communities. This makes them an ideal partner for SoundCloud and we are excited to bring our game-changing fan-driven product to their incredible roster of artists,” said Seton, a longtime Warner Music executive who signed with SoundCloud last year. past.
“The research we have seen to date suggests that a shift to user-centric payments would not benefit artists as much as many might have originally hoped,” Spotify communicated about the possible turn powered by fans. “We are willing to make the switch to a user-centric model if that is what artists, songwriters and rights holders want to do. However, Spotify cannot make this decision on its own; it requires broad industry alignment to implement this change.”