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SoundCloud says user-centric boosted the royalties for Portishead’s SOS by 500%

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SoundCloud says that an Abba cover posted to its platform by Portishead received six times more royalties because the company employs a user-centric system for distributing monies to its community of independent creators.

So, that’s six times more than if the industry-standard practice for allocating streaming monies to tracks had been used.Streaming is a revenue share business with services sharing their revenues with the music industry each month.

That process begins by allocating a percentage of revenue to each track in the system, based on what portion of listening each track accounted for.

That allocation is then shared with the label or distributor that controls the recording rights, and the publisher or collecting society that.

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