SoundCloud to be first music app with 'fan-powered' artist payments

The company said the new payment system – known as ‘fan-powered royalties’ or ‘user-centric model’ – would empower listeners and encourage greater diversity in musical styles. — 123rf.com

SoundCloud announced Tuesday (March 2) it will become the first streaming service to start directing subscribers' fees only to the artists they listen to, a move welcomed by musicians campaigning for fairer pay.

At the moment, streaming services like Spotify, Deezer and Apple put royalty payments into one big pot and dish them out based on which artists have the most global plays.