SoundCloud is actively exploring the possibility of introducing a novel payment system that would enable users to directly pay their favorite musicians. This potential move signifies a departure from the conventional streaming model employed by platforms like Spotify, where the platform acts as an intermediary between users and artists. Currently, streaming platforms distribute a significant portion of their subscription revenues to artists based on the number of streams, favoring established and renowned musicians while making it challenging for independent and emerging artists to earn a substantial income.

In response to this disparity, SoundCloud is contemplating alternative business models, including direct payments and tipping options directly from listeners to artists. If this initiative materializes, SoundCloud would become the first major streaming platform to offer such a feature, bringing it closer to platforms like Bandcamp, which already empowers fans to directly support artists.

The ongoing COVID-19 pandemic has further highlighted the financial challenges faced by smaller musicians due to the suspension of live events and tours. SoundCloud's potential shift towards a more artist-centric model aims to address these issues by providing a platform where fans can contribute directly to their favorite musicians, fostering a more equitable and supportive environment for independent artists in the music industry. Although SoundCloud has not finalized its decision, the platform intends to announce its choice before the current quarter concludes, signaling a potential revolution in the streaming landscape.