WMG SIGNS UP FOR SOUNDCLOUD'S FAN-POWERED ROYALTIES

Soundcloud has struck a global licensing deal with WMG, making it the first major label to adopt the DSP's payout model, Fan-Powered Royalties (FPR).

The pact allows every artist on WMG’s roster to be paid based on fan listening behavior on SoundCloud. Subscription or advertising revenue corresponding to fan participation is distributed among the artists they listen to, rather than being pooled in the traditional pro-rata model the music industry has been using for more than a decade.

Said SoundCloud President Eliah Seton, “Today's deal is a major milestone because, under Fan-Powered 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,”

WMG Chief Digital Officer & EVP, Business Development, Oana Ruxandra added, “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 the opportunities for our artists and their communities are maximized.”

Venice Music founder and CEO Troy Carter, who is a member of the SoundCloud board, stated, “I’m thrilled to be part of a group of dynamic leaders committed to bringing us one step closer to an artist-centric music industry.”