SoundCloud's Game-Changing Leap: Artists Claim 100% of Royalties in New Era of Creator Empowerment
By Elena Vasquez, Music Business Daily, November 14, 2025
In a seismic shift that's sending ripples through the music industry, SoundCloud has unveiled a subscription model that hands artists the full reins on their earnings. Announced on October 30, 2025, the platform's new "All-In-One Artist Subscription" allows independent creators to retain 100% of royalties from music distributed across more than 60 streaming services, including Spotify, Apple Music, TikTok, and YouTube Music. No more 20% cuts from the distributor—every penny from streams, downloads, and syncs goes straight to the artist. This isn't just a tweak; it's a declaration of war on the opaque royalty structures that have long plagued emerging talent.
For years, SoundCloud has been the digital sandbox where bedroom producers and viral hopefuls test their sound, amassing over 175 million tracks and a fiercely loyal community of "music obsessives." But monetization? That was the rub. Under the previous SoundCloud for Artists Premier plan, creators kept about 80% of distribution royalties after the platform's slice, a model that mirrored competitors like DistroKid and TuneCore but still left many feeling shortchanged in an era where a single stream nets less than a tenth of a cent. Now, with this update effective for payouts starting November 2025, SoundCloud is betting big on transparency and artist-first economics to reclaim its throne as the go-to hub for indie music.
The timing couldn't be more poignant. As major labels consolidate power amid AI-driven disruptions and TikTok's algorithm-fueled virality, independent artists are squeezed harder than ever. A 2024 MIDiA Research report pegged the average indie artist's annual streaming revenue at just $1,200—barely enough for a month's rent in Brooklyn. SoundCloud's move feels like a lifeline, especially for the platform's core demographic: Gen Z and millennial creators who upload demos, remixes, and EPs without the safety net of a label advance.
From Uploads to Uplifts: SoundCloud's Evolution
SoundCloud's story is one of scrappy innovation turned industry staple. Founded in 2007 by Swedish entrepreneurs Alex Ljung and Eric Wahlforss, it started as a simple audio-sharing site for sound designers and DJs. By 2013, it had exploded into a discovery engine, launching careers like those of Billie Eilish (whose early tracks racked up millions of plays) and Post Malone. But growth brought growing pains: a 2017 funding crunch nearly sank the company, forcing it to pivot toward monetization tools like repost chains and basic royalties.
Enter SoundCloud for Artists in 2018, which bundled distribution, analytics, and promo tools into tiered plans. The Premier tier, at $99 annually (or about $8.25 monthly), promised 80% royalties on distributed tracks—a step up from free uploaders but still trailing the "zero-cut" dreams peddled by upstarts like Amuse. Artists grumbled about hidden fees, payout delays (net 60 days), and the platform's infamous "repayable advances" that could claw back earnings if streams tanked.
Fast-forward to 2025, and SoundCloud's under new stewardship after a 2023 acquisition by SiriusXM, which injected $200 million into creator tools. CEO Michael Herd, a former Spotify exec, has steered the ship toward "sustainable independence," citing data that 70% of SoundCloud's 40 million monthly users are undiscovered artists seeking direct fan connections. The All-In-One plan is the culmination of this vision: for that same $8.25 monthly fee, artists get unlimited distribution, built-in monetization, and zero platform cuts on royalties, Fan Support tips, or merch sales.
Digging into the fine print reveals a model built for scale. Tracks uploaded via the plan beam out to 60+ DSPs (digital service providers) instantly, tapping SoundCloud's 76 million global users for immediate plays. Royalties? 100% artist-retained, with only a nominal payout processing fee (as low as $0.50 per transaction via partners like PayPal or bank transfer) once earnings hit $25. No upfront costs for vinyl-on-demand releases—artists can press limited-edition runs without bulk minimums—or for linking merch stores, where SoundCloud takes zilch from sales.
It's not without caveats. The 100% share applies only to new distributions post-November 2025; legacy earnings might still reflect the old 80/20 split. And while SoundCloud touts "no hidden fees," tax forms and two-factor authentication are mandatory for payouts, a nod to fraud prevention amid rising cyber threats in creator economies. Still, for a Nashville trap producer like DXRKNOVA, who credits the platform for doubling her monthly earnings through targeted promo, it's a no-brainer upgrade.
The All-In-One Blueprint: Features That Fuel Futures
At its heart, the All-In-One Subscription is a Swiss Army knife for the solo artist hustler. Distribution is the star: upload once, and your track hits Spotify playlists, Apple Music's algorithmic feeds, and even niche spots like Deezer or Tidal. SoundCloud's edge? Its proprietary "Instant Reach" algorithm, which funnels new releases to superfans and tastemakers within hours, potentially spiking plays before competitors even index the file.
Monetization layers on seamlessly. Fan Support lets listeners tip directly—every cent to the artist, displayed as a "top supporter" badge on profiles to foster loyalty. Merch integration is plug-and-play: link your Teespring or Bandcamp store, and SoundCloud's storefront widget handles discovery with zero fees. For physical die-hards, the vinyl-on-demand tool turns digital hits into 7-inch pressings, shipped globally without inventory risks. "It's like having a label without the middleman," says Brooklyn DJ nextdimensional, whose EP Portal saw a 40% revenue bump after bundling streams with fan tips and limited-edition merch.
Analytics round out the package: real-time insights on listener demographics, stream sources, and even AI-powered "mood mapping" to suggest collab opportunities. At $99/year, it's competitively priced against DistroKid's $22.99 annual unlimited plan (which takes 0% but lacks built-in audience tools) or TuneCore's $29.99/single (with varying cuts). SoundCloud's pitch: Why fragment your workflow when one dashboard handles discovery, distribution, and dollars?
Critics might quibble over the subscription lock-in—free users still face upload limits and no distribution—but for pros, it's a steal. Early adopters report 15-20% earnings lifts, per internal SoundCloud data, thanks to the platform's 320 million tracks-strong library acting as a perpetual promo engine.
Voices from the Upload Trenches: Artist Reactions Pour In
The announcement lit up X like a viral remix. "SoundCloud the MVP baby 100% Royalties >," tweeted electronic artist Siren Diamant, capturing the euphoria among bedroom producers. South African DJ Tezz echoed the sentiment: "Major Update for Independent Artists... keep 100% of their royalties, not just on SoundCloud, but also on Spotify, Apple Music, TikTok and more." NME amplified the buzz, headlining it as a "100 per cent of distribution royalties" win, while Mixmag hailed it for dance music creators.
Not everyone's popping champagne uncorked. Your EDM's analysis cut through the hype: "When each stream is still worth a fraction of a cent, this indicates that artist's 'keeping' their royalties may not mean much at all." Indie vocal coach Randy Morano noted the fee: "100% royalties for creators (minus an $8.25/mo fee). A huge shift toward artist-first monetization." And Charm Cracker, a self-produced multi-instrumentalist, plugged referral codes, underscoring the grassroots uptake: "They are bypassing the competition... Spotify is not working for me, really."
Interviews with early switchers paint a nuanced picture. "I've been grinding SoundCloud since 2019, scraping by on 80% scraps," shares LA-based rapper J. Mira, who dropped her debut mixtape Echo Chamber last week. "Now? That extra 20% covers my plug-ins. It's not riches, but it's respect." For global acts like Romio, an Italian Web3 musician blending NFTs with beats, the plan aligns with blockchain's decentralization ethos: "Big news for indie artists! 100% of distribution royalties for tracks released via SoundCloud."
Even skeptics concede the momentum. Rolling Stone Brasil covered it in Portuguese, emphasizing accessibility for non-English markets, while Exclaim! touted it as a North American boon. As one anonymous SoundCloud vet put it: "It's the push we needed to treat music like a business, not a hobby."
Ripples in the Royalty Pool: Broader Industry Shifts
This isn't happening in a vacuum. The music biz is in flux: Universal Music Group's 2024 TikTok standoff exposed streaming's fragility, while AI tools like Suno democratize production but dilute per-stream value. Platforms like Bandcamp thrive on direct-to-fan models (100% artist cuts, minus 10-15% fees), but lack distribution scale. SoundCloud bridges that gap, potentially siphoning users from Spotify for Artists (70% royalties post-label cuts) or Apple's $9.99 pro tier.
Economically, it's a calculated risk. SoundCloud's revenue—pegged at $300 million annually—leans on ads and subs, not distribution vig. By waiving the 20% (estimated $50 million yearly), they're banking on volume: more uploads mean more engagement, data sales, and ecosystem lock-in. Analysts at Billboard predict a 25% subscriber bump by Q2 2026, especially if viral hits like the platform's past (e.g., Lil Nas X's "Old Town Road") recur.
For marginalized creators—women, POC, LGBTQ+ artists who comprise 60% of SoundCloud's base per a 2025 USC Annenberg study—this levels the field. No more gatekept advances or predatory deals; just tools to build empires. "We're not just streaming; we're stewarding," Herd said in a company blog, though exec quotes remain sparse.
A Symphony of Change: What's Next?
As November's payouts roll out—first 100% checks hitting December—watch for copycats. Will DistroKid drop its unlimited model to zero cuts? Could Spotify counter with fan-direct royalties? SoundCloud's bet is bold: in a $28 billion streaming market dominated by three majors, empowering the underdogs might just rewrite the score.
For now, artists like J. Mira are tuning up. "This feels like the remix we deserved," she says. In an industry often accused of lip-syncing equity, SoundCloud is finally letting creators take the mic—and keep the mic drop.
