SoundCloud's New Model: 100% Royalties for Indie Artists
On October 30, 2025, SoundCloud launched a new all-in-one artist model. It combines distribution and fan-funding tools, allowing creators to keep 100% of their distribution royalties and direct fan support payments, aiming to become a central hub for independent artists.
A Game-Changer for Independent Music Creators
In a significant move to empower independent artists, SoundCloud overhauled its artist services on October 30, 2025. The platform rolled out a unified subscription model that integrates music distribution, direct fan monetization, and other career-management tools into a single, streamlined service. This update, which applies automatically to all existing 'Artist' and 'Artist Pro' subscribers, is designed to maximize creators' earnings and simplify their workflow.
The Two Biggest Financial Wins for Artists
The most impactful changes in this new model directly address how artists get paid. SoundCloud has restructured its policies to give creators a larger piece of the pie, a move that positions it competitively against other music services.
Keep 100% of Your Distribution Royalties
Perhaps the biggest headline is SoundCloud's new distribution policy. Artists using the platform to distribute their music to other major streaming services—known as Digital Service Providers (DSPs) like Spotify, Apple Music, and YouTube Music—will now receive 100 percent of their royalties from those platforms. By eliminating its commission on external earnings, SoundCloud ensures that the revenue generated elsewhere flows directly back to the artist's pocket.
Direct Fan Support is Now Truly Direct
SoundCloud has also removed its revenue share from the 'Support' button, a feature that allows listeners to send direct payments to their favorite artists. Under the updated policy, SoundCloud takes a 0% cut of these fan contributions. This makes the tool a more powerful and transparent way for fans to support creators financially.
It is important to note that while SoundCloud's fee is gone, standard third-party payment processing fees will still apply to these transactions.
A Unified Hub for Your Music Career
Beyond the financial benefits, this initiative aims to establish SoundCloud as an indispensable, all-in-one ecosystem for artists and DJs. By consolidating essential services, the platform allows creators to:
- Distribute music to major platforms worldwide.
- Monetize work through direct fan support and streaming royalties.
- Manage their career from a single dashboard.
- Engage with their community on the same platform where their music lives.
The integration also includes streamlined access to merchandise services, further centralizing the tools an independent artist needs to build a sustainable career.
What This Means for Independent Artists
For new and established independent creators, SoundCloud's updated model presents a compelling value proposition. The promise of keeping all distribution royalties and fan support payments simplifies revenue streams and makes financial outcomes more predictable. Since the changes were applied to existing paid plans without a price increase, current subscribers received an immediate upgrade in value.
This strategic shift solidifies SoundCloud's commitment to its creator-first identity, leveraging its massive community to offer a service that competes directly with dedicated distribution platforms like DistroKid and TuneCore. By bundling distribution with its unique social and fan-engagement features, SoundCloud is making a strong case to be the central hub for the modern independent artist.