Last.fm to give independent and unsigned artists a cut of ad revenue

Popular CBS-owned social music site Last.fm will put their Artist Royalty Program into effect next Wednesday. The program will give artists a percentage of the revenue earned from the ads that run alongside their streaming music. Wired carried the following statement from site co-founder Martin Stiksel:

This is a big day for DIY artists. We're leveling the playing field by offering them the same opportunities as established bands to make money from their music. The young musician making music in a bedroom studio has the same chance as the latest major label signing to use Last.fm to build an audience and get rewarded.

The site already pays artists through rights organizations. Over 450,000 tracks have reportedly been uploaded as part of the Royalty program.

Wired's report raises and interesting point in comparing Last.fm (which grew out of the playlist-tracking Audioscrobbler software) with social media giant MySpace. MySpace plans to compensate major labels with a share of ad revenue, but it's unclear if or when such opportunities will open for indie labels or unsigned artists.