Popular music company SoundCloud has recently announced to introduce fan-powered royalties — a more fair and transparent way for artists to earn money.

The company has announced that it will pay artists royalties based on “overall listening time”.

The platform’s new payment agenda will pay royalties to singers and artists depending over users’ listening habits.

“The more fans listen on SoundCloud, and listen to your music, the more you get paid,” the company explained.

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Under this game-changing model, we're leveling the playing field for emerging independent artists and empowering fans to directly support the artists they love (2/5)

— SoundCloud (@SoundCloud) March 2, 2021

Fan-powered royalties are what independent artists across the industry have been asking for — and as an artist-first platform, we’re excited to be the first music company to roll it out, added the music platform.

Fan-powered royalties are what independent artists across the industry have been asking for — and as an artist-first platform, we’re excited to be the first music company to roll it out (4/5)

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— SoundCloud (@SoundCloud) March 2, 2021

Furthermore, the announcement was accompanied by the tagline “Artists deserve to be paid fairly.”

Many independent artists have taken aim at the small royalties paid out by major streaming services like Spotify.

However, the new payment system on SoundCloud will come into effect from April 1, 2021.