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# No, Soundcloud is not keeping 45% of those new ‘fan-powered’ royalty checks
- URL: https://www.hypebot.com/no-soundcloud-is-not-keeping-45-of-those-new-fan-powered-royalty-checks/
- Published: 2021-03-11T18:07:00.000Z
- Updated: 2021-03-12T13:11:04.000Z
- Description: We’ve been skeptical of SoundCloud’s new ‘fan-powered’ user-centric royalty system because it requires that artists become paying members to get paid. SoundCloud poured fuel on the fire when in an. Continue reading [https://www.hypebot.com/hypebot/2021/03/no-soundcloud-is-not-keeping-45-of-those-new
- Author: Bruce Houghton
- Tags: DIY Advice & Tips, Music Business, Streaming, #wp, #wp-post, #Import 2026-01-21 09:51

We’ve been [skeptical](https://celebrityaccess.com/2021/03/02/soundcloud-shifts-to-fan-powered-royalties-but-artists-must-pay-to-get-paid/?ref=hypebot.com) of SoundCloud’s new ‘fan-powered’ user-centric royalty system because it requires that artists become paying members to get paid.

![](https://storage.ghost.io/c/3a/95/3a957c06-c825-4057-9939-0a274cc16d23/content/images/www-hypebot-com/wp-content/uploads/2019/11/soundcloud-square.png)

SoundCloud poured fuel on the fire when in an [interview with Vice](https://musically.com/2021/03/09/soundcloud-will-take-45-cut-of-fan-powered-royalties/?ref=hypebot.com), a company rep suggested that the company would be taking a 45% share under the royalty system.

Now a company spokesperson has told [Music Ally](https://musically.com/2021/03/11/soundcloud-clarifies-revenue-share-from-fan-powered-royalties/?ref=hypebot.com) that SoundCloud is not keeping 45% because it is paying mechanical, publishing and other royalties out of that share.

“SoundCloud does keep some profit, but it is in line with if not lower than the industry average,” said the spokesperson.