A collaboration between Portishead and SoundCloud has shed light on a new royalty distribution system that proponents argue could help level the playing field for working musicians. Under SoundCloud’s “fan-powered” royalty model, unveiled in March, a listener’s subscription or advertising revenue goes directly to the artists to whom they listen in a given period of time; that’s instead of the “pro-rata” model typically used by Spotify and other streaming services where money is pooled and divvied up to rights holders based on their market share.
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SoundCloud Says Portishead Song Earned 500% More Under New Royalty Plan
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