Earlier this week we reported on a SoundCloud interview with Vice that suggested the company would be taking a 45% cut from its new ‘fan-powered royalties’ (user-centric) system. The company has since revealed that the interview misinterpreted its policies, and that its share is actually lower.
A spokesperson told Music Ally that SoundCloud is not keeping 45%, because it is paying mechanical royalties and performance publishing royalties out of that share, as well as other costs (for example to payment providers).
“SoundCloud does keep some profit, but it is in line with if not lower than the industry average,” said the spokesperson. It’s good to hear, and we’re happy to run this clarification. The more transparency there is around the user-centric model, the better.
Tools: platforms to help you reach new audiences
Tools :: We Are Giant
With “fan communities” being on every artist’s team’s mind, we’re fans of the fact that…