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SoundCloud will become the first streaming service to start directing subscribers’ fees only to the artists they stream. This move is applauded by the artist community campaigning for fairer pay.

Streaming services like Spotify and Apple put royalty payments into one big pot and pay them out based on which artists have the most plays. This payout is unfair, that gives a huge slice to the few megastars like Ariana Grande, and leaves nothing for the majority of the artists.

Why should fans fund artists that they never listen to? It doesn’t make sense.

SoundCloud will start directing royalties due from each subscriber only to the artists they stream.

“Artists are now better equipped to grow their careers by forging deeper connections with their most dedicated fans,” the statement said. “Fans can directly influence how their favorite artists are paid.”

Major record labels favor the Spotify/ Apple payout system which allows them to generate massive profits through a few artists.

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