“Streaming Alone Isn’t Enough”: SoundCloud Execs on New Model Eliminating Platform Revenue Cuts

SoundCloud has long occupied an awkward middle ground in music tech: too indie to compete with Spotify’s scale, too established to play the scrappy upstart. But their new subscription model could change that for good.

The company is launching a revamped “All-in-One” artist subscription that eliminates its distribution revenue shares entirely and adds direct fan support with no platform cut, making a major play to become the one-stop shop for independent musicians. Starting at the end of November 2025, SoundCloud will pass through 100% of distribution royalties to artists subscribing to its Artist and Artist Pro tiers, which means they keep everything they earn from placements on Spotify, Apple Music, TikTok, YouTube Music and over 50 other streaming platforms.

The move puts the platform in direct competition with services like DistroKid and TuneCore, which have long dominated the space despite copyright lawsuits and persistent backlash from artists concerning their distribution models.

SoundCloud is also launching a Fan Support feature that lets listeners tip artists directly through their profiles, and the company takes zero commission. The new model will additionally offer merchandising and vinyl-on-demand options, enabling artists to sell physical products without inventory headaches or upfront costs.

Whether it rallies creators back to SoundCloud en masse remains to be seen. The platform has stumbled before, most notoriously with its fallible copyright infrastructure and a user-centric royalty model that never quite materialized. But if the company can deliver on this promise, it might finally answer the question with which it’s been wrestling for years: what does SoundCloud want to be when it grows up?

The answer is a Swiss Army knife for artists who refuse to get carved up by today’s tortuous music industry. Why juggle multiple platforms when you can upload, distribute and monetize all from the same place you’ve been building your fanbase?

Back in 2007, SoundCloud’s original founders were just trying to help artists share demos with fans. Today’s CEO, Eliah Seton, says their prevailing mission still drives the company.

“SoundCloud’s founding purpose is to empower artists and fans to share and connect through music, and that same idea, today, is driving the next generation of the music industry,” Seton tells EDM.com. “The founding purpose is up on our office walls because it’s more the center of gravity in music than ever before.”

“We know the future of music will live on global scaled platforms that connect artists and fans directly. That’s SoundCloud,” he continues. “That’s what the founders built, and it’s more true today than ever. The market has come to us.”

We also caught up with Steve Shirley, VP of Product Management for SoundCloud’s Creator arm, to discuss the implications of the platform’s new “All-in-One” artist subscription.

EDM.com: What was the moment you realized SoundCloud needed to make this specific move? Was there a particular artist conversation, piece of data or some kind of epiphany?

Steve Shirley: There wasn’t one singular moment. This comes as the broader music and creator economy shifts—artists demanding greater control, fans seeking deeper connection, and platforms under pressure to prove real value beyond streaming. SoundCloud sits at the intersection of all three.

The upcoming launch isn’t just a milestone for the company; it’s a timely story that reflects a larger inflection point in how artists build sustainable careers and how platforms evolve to support them. The core message is simple but urgent: streaming alone isn’t enough. SoundCloud is uniquely positioned to fix that by creating new, fan-driven revenue models.

Building on Fan-Powered Royalties, the first system tying royalties to real listener engagement, the company is now expanding beyond the traditional royalty pie into new ways for artists to earn directly from fans: 100% distribution royalties, merch, vinyl and exclusive content. 

EDM.com: You’re eliminating distribution revenue share entirely while competitors like DistroKid, TuneCore and CD Baby charge either flat fees or take cuts. How does SoundCloud convince its investors and stakeholders that giving away what others charge premium prices for is actually a superior long-term business model and not just charitable positioning?

Steve Shirley: Our business model is rooted in growth—the more artists we help succeed, the stronger our platform becomes. When artists earn more and engage more deeply, it drives both retention and discovery across the platform. That growth benefits artists, fans and ultimately SoundCloud’s business.

EDM.com: This announcement is all about monetization infrastructure, but SoundCloud’s original unique selling proposition was being where new sounds broke first. Has the platform conceded the discovery game to TikTok and Spotify’s algorithmic playlists? What’s your strategy for making artists discoverable once they’ve opted into this new subscription?

Steve Shirley: Not at all. By fueling creators, we fuel fandom. Fans discover and connect more deeply; creators convert that energy into growth and revenue. SoundCloud is the engine that makes it happen. It’s this full-circle ecosystem where direct artist-fan connection turns deeper discovery into growth and revenue that makes SoundCloud so unique.

From our earliest days, SoundCloud has been the place to leave real-time feedback, DM your favorite artist and connect with fans who love the same music you do. That social spirit has always set us apart, and it’s still central to how you experience SoundCloud.

Just earlier this month, SoundCloud rolled out a new wave of Social Discovery features to ensure that experience is front and center. Fans can see what friends and artists love, uncover what’s trending in their scene and find their next obsession (and their friend group’s next obsession) faster than ever.

EDM.com: On-demand vinyl is an interesting offering. Meanwhile, TikTok is fragmenting songs into 15-second clips, AI is generating infinite variations and spatial audio is creating format wars. How does vinyl fit into SoundCloud’s vision for the future of music consumption, or is this just tactical feature parity with Bandcamp?

Steve Shirley: We believe the future of music is fandom, and being able to monetize that fandom is essential. On-Demand Vinyl via our elasticStage partnership enables artists to sell vinyl globally with no upfront cost, risk, or minimum orders, giving fans direct ways to support artists and show off their fandom.

For decades, vinyl has been a tangible way for fans to support artists they love, yet for most independent artists, producing vinyl has been financially and logistically out of reach. Now, fans can purchase physical music instantl and artists start earning from the first sale. We’re committed to providing artists with new opportunities for connection and monetization and ensuring that every artist—no matter where they are in their career—has the tools to build a sustainable career.

EDM.com: The top 1% of artists capture the vast majority of streaming revenue, but your new model seems to assume a thriving creator middle class. What evidence do you have that this cohort exists at scale, and that they’ll choose SoundCloud over established alternatives?

Steve Shirley: We see that cohort every day on SoundCloud. Thousands of independent artists are building sustainable, fan-driven careers without major label backing. This launch gives them even more tools: 100% distribution royalties, direct fan support, merch and vinyl to turn creative momentum into income.

EDM.com: You’re positioning this as an “all-in-one” solution but artists still need email marketing tools, social media scheduling, copyright protection, sync licensing connections and a lot more. Does SoundCloud have plans to expand this subscription?

Steve Shirley: Yes. SoundCloud was built to help artists share their music, grow their careers and get rewarded for their work, and that remains our guiding principle. The All-in-One subscription is a major step in making the core experience—distribution, monetization and fan connection—fully seamless. From here, we’ll continue to evolve thoughtfully, adding tools and partnerships that deliver real impact for artists.