The short answer is no.
It all depends on “how” the platform decides to slice the subscription pie.
On one side, we have the pro-rata model (used by Spotify and Apple Music): all revenue goes into a single global pool and is redistributed based on the total share of streams. If an artist generates 1% of total global plays, they receive 1% of the money. This system rewards massive numbers and the ability to climb the charts.
On the other side is SoundCloud’s Fan-Powered model. Here, your subscription fee follows your specific listening habits: if you only listened to niche Jazz this month, your money goes directly to those musicians rather than being tossed into the “big pop hits” cauldron.
What changes for those producing music?
➡️ Pro-Rata Model: Perfect for those aiming for the masses, high volumes, and editorial playlists. It is the “Major League” of global visibility.
➡️ Fan-Powered Model: The promised land for independent artists with a loyal fanbase. Here, you don’t need millions of streams to survive; you just need your dedicated fans to actually listen to you.
There isn’t one “correct” model, but there are different strategies.
Spotify remains the king of mass distribution, while SoundCloud is becoming the go-to tool for those looking to monetize the depth of their fan relationships over sheer quantity.
I’m Andrea Corelli, Music Industry Professional and Advisor.
From Monday to Friday, I share strategies, backstage insights, and the stories behind the songs on LinkedIn. On the weekend, I just enjoy the flow.
If you need help with your artist, label, project, or music startup, get in touch.