DJs Get Into Streaming Revenue Mix

Mixcloud’s “Select” offering, starting at $2.99 a month per channel, represents a departure from the $10-a-month, all-you-can-eat subscriptions currently available on major music-streaming services. For the first time DJs, whose artistry involves mixing music originally created by others, can profit.

The London-based service carries around 15 million online radio shows uploaded by more than 1.3 million DJs.

Nikhil Shah, Mixcloud’s co-founder, said it has been looking for a way to reward its top creators, who don’t fit into the royalty models currently offered by Spotify Technology SA and Apple Inc.’s Apple Music.

The internet-radio streaming service allows DJs and radio hosts to upload mixes, shows and podcasts to their own channels, which are ad-supported; for $6.99 a month users can listen without ads. While Mixcloud, a SoundCloud competitor, is popular for hosting long sets of dance music, it carries everything from house and techno to pop, hip-hop and soul.

Mixcloud doesn’t disclose how many subscribers it has.

Some DJs create original songs that are available widely on streaming services, but most make their money through live performances at nightclubs or festivals, where they mix together lengthy, seamless sets of dance music originally composed by others.

After record labels, artists and others are paid royalties for their songs that get played or mixed into a set, the 47 creators launching paid channels on Mixcloud on Tuesday will collect more than half of the remaining revenue from subscriptions. These creators comprise DJs, radio hosts, radio stations, record labels and publications behind radio shows and mixes.

“We’ve seen them build an audience on our platform, but they haven’t had a way to monetize that,” said Mr. Shah, who said the industry is through streaming’s first phase: replacing piracy with paid services. “We’re now entering this new chapter where there’s a need for diversity in business models and to respond to demand from fans.”

As streaming has returned the music business to growth, executives have called for different approaches to subscriptions. But so far few such alternatives have materialized.

Among the new features included with Mixcloud’s $2.99-a-month service is the ability to download music to listen offline, view tracklists and skip around within sets, which won’t have ads. DJs will soon be able to begin offering exclusive content to their paid channels and raise prices as they see fit.

Dan Pearce, who performs electronic dance music under the name Eats Everything, has original songs available on iTunes and streaming services, but the full sets from his FM radio show “edible bEats” and from his live shows have been available on Mixcloud for free—until now.

While Mr. Pearce can expect to continue to make most of his income performing, he said the subscription channels will be especially beneficial for lesser-known DJs still building a following.

“People are putting hours, days, weeks, even months into making music, and they’re not getting paid,” he said. “I do OK touring, but there are a lot of artists who don’t, and this will be the first time they’re making anything from music.”

Jen Martinez said she uses Mixcloud “all day, every day, throughout my personal life and work life.” The 41-year-old Oakland, Calif., resident doesn’t subscribe to any music-streaming services but said the $2.99 price tag is “beyond reasonable.”

“One of the reasons why I’m not part of Spotify or other music-streaming services is because 10 bucks after a while turns out to be quite pricey,” said Ms. Martinez, who sees herself subscribing to one or two artists at a time.

Antony Daly, who owns a record store in Newcastle upon Tyne, England, uses Mixcloud to keep up-to-date on new music and to catalog his own mixes. Mr. Daly, 41 years old, said that separately subscribing to specific DJs wouldn’t be cost-effective.

“There are so many great DJs out there,” he said.

Write to Anne Steele at Anne.Steele@wsj.com