Mixcloud Select a Traditional Music Streaming Platform

Hi all, in this post I take a look at a non-Crypto music platform making a splash with a new subscription model launched by Mixcloud Select, recently.

So let’s dig into some interesting facts - About one million minutes of audio are uploaded to Mixcloud everyday, in the form of “long form audio” shows. A single show can last between fifteen minutes to five hours, but typically consists of about an hour of expertly curated musical tracks. We’re talking DJ sets, radio shows, podcasts and mixtapes that make up a rich catalogue of over 15 million shows made by creators worldwide. According to our research there are approximately 20+ Million active monthly users.

Here is the process Mixcloud have always followed - Every music track out there in the world has two underlying pieces of copyrighted intellectual property: the sound recording (usually owned by a label) and the musical work (usually owned by publishers). When you stream any show on Mixcloud, for free, the underlying tracks are identified through audio fingerprinting. Mixcloud pays a royalty fee to those labels and publishers, who then distribute amongst the artists and songwriters.

Given the above facts and considering the business model that Mixcloud has adhered to from their initial launch way back in 2008, by the way their head office is in London and they recently opened another office in New York. Together with a great funding round in 2018 which allowed the team to analyze the streaming music ecosystem with a deeper look at how revenue was being generated and distributed. Needless to say they acknowledged the elephant in the room “The core members of our community who we’ve always championed– the DJs, community radio stations, record labels, festivals and collectives– weren’t able to make money from people listening to their stuff online.”

Which lead them to set out to make direct deals with Universal Music Group, Sony Music Entertainment, Warner Music GroupMerlin, Warner/Chappell Music Publishing, ICE and many others. These deals are groundbreaking, because they identify the “long form audio creator” as part of the digital revenue mix.

Powered directly by fans rather than advertising money, we’re now able to let revenue on our platform flow in all the right directions.”

So how does it work? Say you’re a fan of dance music superstar John Digweed, one of the biggest DJs on the planet, who attracts tens of thousands of listeners to his legendary Transitions show week on week or maybe you love collectives like RondoGlobal

Now you can subscribe to support your favorite Mixcloud channel, from as little as (£/$/€) 2.99 a month, or a slightly higher price set by the creator– essentially the price of buying a monthly coffee– fans can subscribe to their favorite creator channel or choose to pledge more. Might as well upgrade that coffee to a pint!

Of that small monthly fee, a first cut goes toward the artists, labels and publishers who own the rights to the tracks played in that creator’s shows, as well as a small credit card processing fee. The creator then gets 60% of what’s left every month from everyone who subscribes to them. The other 40% goes to Mixcloud, so we can invest it back into the platform and keep things running– administering our licenses, building the website and the apps, hosting the audio, paying our rent, etc.

Now considering other streaming platforms do not offer this type of tiered revenue share, we are extremely impressed by this new direction that Mixcloud are embarking on, as it shows a genuine and authentic support for the entire ecosystem and provides new opportunities for creators across the full spectrum of electronic music and not just top tier artists, but emerging artists and new creators.

Stay locked on RondoGlobal on Mixcloud Select as we continue our 4+ year journey with Mixcloud and continue to bring you an epic showcase of emerging talent from our global collective. 

We all do it for the Love of Music, but love alone does not pay the bills. Ergo we say well done to the whole team at Mixcloud Select we support your new direction.

We hope that you are finding this series of articles informative and encourage you to follow us on FB, IG or Twitter at @rondoglobal

Jonathan Finberg, Founder - Rondo

Sources: Nico Perez , Nikhil Shah & Mat Clayton - Co-founders of Mixcloud

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Captain Fin
Captain Fin

The world is an infinitely evolving ecosystem, full of wonder we seek to discover the latest technologies disrupting our surroundings. Working towards a new adventure sailing around the world, powered by solar and wind in an Eco Catamaran.

RONDO = Music + Blockchain + Crypto
RONDO = Music + Blockchain + Crypto

Rondo is a Digital platform for Music & Live Entertainment, supporting artists worldwide. We reduce the friction for musicians earning with our "universal music income" and using digital currencies in the real world.

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