SoundCloud monetization terms update: what’s new and what matters

SoundCloud has posted a new “SoundCloud Monetization Terms of Service” for both On-Platform Monetization and Off-Platform Distribution. The terms page shows “Last Updated: October 31, 2025”. SoundCloud’s notice to artists says the update will take effect on November 24, 2025. (SoundCloud)

Headline changes

• Distribution service fee removed. Off-Platform Distribution now pays 100% of Net Revenues to the artist, and SoundCloud states it will not retain any “so-called distribution fee” for its own benefit. Earlier versions retained a 20% “Off-Platform Distribution Fee” (80% to artists). (SoundCloud)
• On-Platform Monetization stays at 100% of net income (Fan Powered Royalty). The terms confirm 100% of net income for on-platform under Fan Powered Royalty. (SoundCloud)
• Payout processing fee transparency. Separate from the removed distribution cut, SoundCloud’s Help Center clarifies a small payout processing fee per payment (as low as $0.50 or up to 2%). This sits alongside a $25 minimum for payouts and net 60 timing. 2FA is required to receive payouts or change payout method. (help.soundcloud.com)
• Eligibility tightened and clarified.
  • You must be 18+ (or age of majority) and pass identity verification.
  • You must have an active paid Artist Subscription (non-paid “Basic” does not qualify).
  • Material eligibility excludes DJ sets, spoken-word, soundalikes, podcasts, and tracks that are exclusively 100% GenAI. WAV and FLAC are currently accepted. (SoundCloud)
• Artificial streaming and fraud enforcement. The terms explicitly forbid automated, artificial or fraudulent plays and paying for access. If SoundCloud reasonably believes plays are artificial, it may exclude those plays, forfeit related revenues, assess fees or fines, and pass through DSP fines to you. Plays under 30 seconds are not counted as “Plays”. (SoundCloud)
• Termination and suspension mechanics.
  • By you: end On-Platform Monetization via support form; canceling your Artist Subscription is deemed notice to end participation. Off-Platform Distribution continues until the End Date as defined.
  • By SoundCloud: termination for any reason on 30 days’ notice, or immediately for violations, canceled subscription, or non-payment. SoundCloud may remove materials or continue distribution during a suspension period. (SoundCloud)
• Third Party Opportunities fee. Brand or endorsement uses facilitated by SoundCloud can carry a 20% distribution fee on that specific revenue stream, negotiated case by case. This is separate from regular distribution royalties, which are now 100% to artists. (SoundCloud)
• Governing law and forum. The terms are governed by California law, with exclusive jurisdiction in Los Angeles County courts. (SoundCloud)

Operational details that affect day-to-day

• Statements and thresholds. Monthly accounting; if monthly Revenues are under $25, they carry over to the next cycle. (SoundCloud)
• Play definition. A “Play” counts at 30 seconds or more; preview clips do not count. (SoundCloud)
• UGC platform distribution. Some selected destinations are UGC platforms (e.g., TikTok, YouTube Shorts); usage there follows those platforms’ standards and policies. (SoundCloud)
• Change notices. SoundCloud says it will provide 14 days’ notice for significant ToS changes before they take effect. (SoundCloud)

Context: what changed compared to older terms

• Then (example 2022 terms): Off-Platform Distribution Share was 80% to artists with a 20% distribution fee retained by SoundCloud/Repost. (SoundCloud)
• Now (2025 terms): Off-Platform Distribution Share is 100% of Net Revenues to artists and no distribution fee is retained by SoundCloud. (SoundCloud)

Official sources

• SoundCloud Monetization Terms of Service (Last Updated: October 31, 2025): https://soundcloud.com/pages/artist/distribution-terms (SoundCloud)
• Getting Paid by SoundCloud for Artists (processing fee, $25 threshold, net 60, 2FA): https://help.soundcloud.com/hc/en-us/articles/360051802713-Getting-Paid-by-SoundCloud-for-Artists (help.soundcloud.com)
• Archived 2022 terms showing prior 20% distribution fee: https://soundcloud.com/pages/artist/distribution-terms/2022-10-12 (SoundCloud)