One study found that for 99.4% of artists, the switch would equate to less than a 5% bump in royalties - for many, effectively just a few euros per year - which could be offset by the administrative costs of the switch itself for the platform. There has, however, been some hesitance around that user-centric idea, mainly due to studies conducted in the last few years surrounding who would benefit, and at the expense of whom, by the switch. Access to the data on who the fans are who are streaming that music the most, SoundCloud has said, is the true game-changer for the model. (Deezer has also publicly supported a user-centric model.) SoundCloud says that artists using FPR generate 60% more streaming revenue than those who use the more traditional model, though it’s currently only being offered to indie artists and WMG artists on the SoundCloud platform a MiDiA study said that 56% of artists were better off with FPR. That, in itself, is a twist on the “fan-powered royalties” that SoundCloud first rolled out in March 2021, which allocated streaming revenue to artists based on which acts a given user listened to, and which Warner Music Group opted into last year. In November 2021, the streamer announced a new three-tier membership structure and a step into a user-centric royalty model for its premium tier, which endeavored to pay rights holders based on the streaming activity of each individual user - with the additional element that 10% of each user’s subscription fee would go directly to their most-streamed artist. This is not TIDAL’s first attempt at stepping out of the traditional streaming royalties model, in which streaming income is collected and divvied up among rights holders according to their share of total streams. Built on deeply held, shared principles about the value of artistry and the importance of the artist-fan relationship, this strategic initiative will explore how to enhance and advance the model in keeping with our collective objectives.” ![]() “Tidal’s embrace of this transformational opportunity is especially exciting because the music ecosystem can work better - for every type of artist and fan - but only through dedicated, thoughtful collaboration. “As the digital landscape continues to evolve, it’s become increasingly clear that music streaming’s economic model needs innovation to ensure a vibrant and sustainable future,” he said. That was more or less what UMG’s executive vp/chief digital officer Michael Nash said in a statement accompanying the release. Essentially, there are a lot of unknowns here other than that something needs to change. To that end, Universal has announced a partnership with TIDAL to “research how, by harnessing fan engagement, digital music services and platforms can generate greater commercial value for every type of artist,” according to a press release. 31), it became a little bit clearer that, as of yet, there isn’t much clarity on what it will mean - though UMG is hoping to find it. ![]() It wasn’t clear what, exactly, Grainge meant in the letter. Lucian Grainge Calls on Music Industry to Self-Disrupt and 'Fight for Artists' at Power 100 Event
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