This week, we saw a lot of new tools and services offered to creators. Some great additions and others left the creators’ world wondering. Let’s see:
#1. Artists being distributed in the metaverse…. And that’s it
Let’s start with some astonishing news: Roblox has partnered with DistroKid (so far so good) to allow indie artists to distribute their music to the platform’s 80 million daily active users. However, these artists won’t be compensated when their music is used in Roblox. The deal, currently in an invite-only beta, requires artists to opt-in, granting rights for their music to be used without payment and with no guarantee that their tracks will even be added to the platform.
This partnership reflects Roblox’s growing involvement with the music industry, including collaborations with major labels, but it seems like they forget about the concept of fair compensation for independent artists. As DistroKid claims to represent 30-40% of all new music, this agreement highlights the ongoing tension between exposure opportunities in new digital spaces and the financial realities for creators.
#2. SoundCloud’s work for merchandising
On another note related to artists, SoundCloud has launched a new merch marketplace called SoundCloud Store, enabling artists to create and sell their own designs. The platform handles the entire process, from creating mock-ups to producing and promoting the merch, while allowing artists to keep 100% of the profits.
Initially featuring designs from artists like Wiz Khalifa and Denzel Curry, the store is part of SoundCloud’s broader effort to enhance fan engagement, building on previous tools like fan analytics and direct communication features. The store is now available to fans in the U.S., Canada, and Europe.
#3. Universal and Meta take things further
Universal Music Group (UMG) and Meta have expanded their global partnership, signing a new multi-year deal that extends music licensing across Meta’s platforms, including Facebook, Instagram, Messenger, and, for the first time, WhatsApp. The deal also introduces a focus on addressing unauthorized AI-generated content, ensuring artists' rights are protected.
While Meta recently stopped licensing premium videos from UMG on Facebook, this new deal opens up fresh revenue streams, particularly in the short-form video space and through additional licensing on WhatsApp. Both companies emphasized the importance of music in connecting fans with artists across social media, and they plan to continue collaborating on innovative ways to integrate music into Meta's platforms.
#4. Apple Tax hits Patreon
Another complicated news for creators: Patreon is facing a significant change due to the "Apple Tax," as Apple is enforcing its 30% App Store fee on all new memberships and purchases made through the Patreon iOS app starting November 2024. This mandate requires Patreon to switch to Apple’s in-app payment system or risk removal from the App Store. As a result, Patreon creators using iOS will need to adapt to subscription-based billing, the only model Apple supports, which could disrupt existing creator-first billing plans like first-of-the-month or per-creation billing.
To help creators offset the Apple Tax, Patreon has introduced an optional tool that can automatically increase prices within the iOS app, ensuring creators continue earning the same amount despite the fee. However, this shift has sparked discontent among users, with some expressing frustration over the removal of flexible billing options and questioning the value of the Patreon iOS app for their business models. Patreon is implementing a 16-month migration period to ease the transition to the new system.
#5. Amazon Music’s new Topics
Amazon Music has introduced a new AI-powered feature called Topics, designed to enhance podcast discovery by allowing users to browse episodes based on specific topics mentioned within them. This feature marks a step towards "podcast unbundling," where listeners can engage with individual episodes rather than subscribing to entire series.
Topics aims to improve content-audience alignment by making it easier for users to find relevant episodes across different podcasts, potentially shifting the focus from overall podcast subscriptions to more targeted, single-episode consumption. While still in its early stages, this development could reshape how podcasts are consumed and recommended, similar to the unbundling trend seen in music.
