SoundCloud has announced a new global licensing deal with Warner Music Group (WMG).
Through this deal, WMG becomes the first major label to adopt SoundCloud’s model, Fan-Powered Royalties (FPR). FPR is a first-to-market payout model driven directly by an artist’s fan base.
Each listener’s subscription or advertising revenue is distributed among the artists that they listen to, rather than their plays being pooled under a traditional model. Thus, FPR levels the playing field for independent artists by linking payouts to fan engagement.
"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 which grow and support their fan communities. This makes them an ideal partner for SoundCloud and we’re excited to bring our game-changing fan-driven product to their incredible roster of artists." said Eliah Seton, President of SoundCloud, in a press release.
With the new partnership, all artists signed under WMG will be able to enjoy the benefits provided by SoundCloud's FPR. Artists may now forge deeper connections with their fanbase with greater transparency. Likewise, fans will now directly influence how their favourite artists are paid, thus leading to further music engagement on the music platform.
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