Has SoundCloud Cracked Superfandom and AI Music?

The New Music Business with Ari Herstand1h 9mJune 3, 2026
AI-Generated Summary

SoundCloud is redefining the music industry by turning its 18-year-old platform into a two-sided marketplace where artists and fans connect directly—without intermediaries. At the heart of this transformation is a fan-powered royalty model that pays artists based on direct listener support, not pro rata market share. This structure ensures that middle-class and indie artists earn more, while also making the platform more transparent and resistant to streaming fraud. But what makes SoundCloud truly unique is its focus on super fandom: tools like 'First Fans' use AI to give new music a fair shot by showing it to 100 initial listeners, and features like follower-exclusive releases and fan support tipping are designed to monetize deep fan loyalty. Crucially, SoundCloud refuses to monetize AI-generated content and requires explicit opt-in for any AI training—making it a rare ethical player in the generative AI music space. CEO Aliyah Seaton argues that the future of music isn’t just streaming or AI—it’s a direct, commercial relationship between artists and fans, and SoundCloud is built to be the global hub for it. The episode reveals a bold vision: a one-stop ecosystem where artists can create, distribute, find fans, and monetize—without leaving the platform. With over 500 million tracks, 45 million creators, and a global fan base that’s already deeply engaged, SoundCloud isn’t just a streaming service—it’s a cultural engine.

Key Takeaways
1

Fan-powered royalties pay artists based on direct listener support, not market share, resulting in more artists earning more—especially middle-class and indie musicians.

2

SoundCloud’s 'First Fans' AI tool gives new music a fair first shot by showing it to 100 targeted listeners, creating a merit-based discovery path.

3

AI-generated music is not monetized on SoundCloud, and the platform requires explicit opt-in for any AI training—ensuring ethical use and artist control.

4

SoundCloud is a full-stack platform: artists can create, distribute to all major DSPs, find fans, and monetize through fan support, exclusive releases, and on-demand merch—all in one place.

5

The platform’s success hinges on a two-sided marketplace where culture, community, and commerce are intertwined—no intermediaries, just direct artist-fan relationships.

…and 3 more takeaways available in PodZeus

Chapters
0:00
2 min

The Fan-Powered Royalty Revolution

In a fan-powered royalties world, more artists get paid more. And it's much easier to have a transparent platform where we can clean service of fraudulent activity and bots.

Highlight
2:00
3 min

SoundCloud’s Dual Marketplace: Fans & Creators

SoundCloud operates as a two-sided marketplace: a fan side with 500 million tracks (85% UGC) and a creator side with 45 million active artists. The platform is designed to help artists find fans, not just store music.

5:00
3 min

The Rise of Super Fandom & Fan Monetization

We're trying to throw some stuff up there to see in what scenes and in what genres and in what markets what products might work.

Highlight
8:20
3 min

AI as a Creator’s Ally—Not a Replacement

We don't monetize AI content on the platform. And that's a hard and fast rule. And that won't change.

Highlight
11:40
3 min

The 'Get Heard, Get Fans, Get Paid' Strategy

Give them a very fair first shot. That product is called First Fans, and it really seeks to solve this problem of getting a new artist heard.

Highlight
High-Impact Quotes
One is, you know, we don't monetize AI content on the platform. And that's a hard and fast rule. And that won't change.
Aliyah Seaton49:42
When we can get that done, that's the, that's it. And you know, the journey is the destination.
Aliyah Seaton68:33
In a fan -powered royalties world, more artists get paid. more. And it's much easier to have a transparent platform where we can clean service of fraudulent activity and bots.
Aliyah Seaton0:51
Speakers

Host

Ari Herstand

Guest

Aliyah Seaton
Topics Discussed
fan-powered royalties95%super fandom monetization90%ai music ethics88%artist distribution platform85%two-sided marketplace82%music discovery algorithm80%generative ai music78%creator economy75%
People & Brands

SoundCloud

organization

120xPositive

Aliyah Seaton

person

45xPositive

Ari Herstand

person

30xPositive

Spotify

organization

15xNeutral

Apple Music

organization

8xNeutral

YouTube

organization

6xNeutral

Billie Eilish

person

5xPositive

Post Malone

person

4xPositive

TikTok

organization

4xNeutral

Lil Nas X

person

3xPositive

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