While streaming is the new normal for music fans around the world, the way artists get paid hasn’t kept pace with the changing industry. Soundcloud’s new Fan Powered Royalties program changes the game, and in this episode of No Shortcuts, Edge gets down to business with Soundcloud’s Director of Rights Administration & Strategy Mike Pelczynski to talk about why the way today’s artists get paid is broken.
Pelczynski has been on the business side for years, and he’s seen the way artists are underserved by today’s royalty structures and has worked on developing a whole new way for artists to get what they’re owed. He tells Edge how the new Fan Powered Royalties program works, who it’s for, and how it is designed to help artists make art they way they want, not the way the algorithm wants them to. It’s about empowering creators and doubling down on the connection between the artists and their most passionate fans.
Beyond the explanation of the new program, they discuss what the music business press got wrong about the launch of Fan Powered Royalties, who benefits the most from the program, and how it can mean the difference between music being a side hustle and music being a career.In the new world Soundcloud is building, artists won’t have to worry about how many plays they’re getting, and what their market share is, they’ll just need to focus on building their fanbase and driving engagement.
Pelczynski and Edge agree: the new paradigm is exciting, especially for a savvy independent artist who treats their career like a business, and Pelcynski shares some real life case studies of artists seeing big increases in their royalties under the new program. But, they decide, perhaps the most exciting thing about Fan Powered Royalties isn’t that artists get a fair share, it’s that fans feel more empowered and more connected to the artists they love.
Learn more about the new FPR system HERE.