soundcloud-2014

SoundCloud to Introduce Ads, Pay Artists & Labels

Everyone’s favorite ad-free streaming platform is about to go commercial. SoundCloud has always allowed its users to upload and stream any kind of audio, and many musicians have taken to the platform to share their newest music. Around 175 million people stream content on SoundCloud each month, which is more than four times Spotify’s global audience. Up until now, SoundCloud hasn’t had audio ads, but starting Thursday the company will enact a new licensing deal with entertainment companies that will incorporate advertising, allowing artists and record labels to collect royalties.

SoundCloud also plans to eventually introduce a paid subscription that will allow listeners to skip ads, similar to how it works on Spotify and other licensed services. Major labels and independents are negotiating with SoundCloud for equity stakes in the company, on the basis of agreeing not to sue SoundCloud over past copyright infringements. While Twitter ultimately decided against acquiring SoundCloud earlier this year, with these moves SoundCloud is set to become a lucrative acquisition candidate.

The folks at SoundCloud may be excited about monetizing their platform, but many artists are critical of how it has handled copyright notices. Takedowns have increased dramatically recently, and some artists feel as though SoundCloud is not treating its content makers with respect.

The first advertisers include Red Bull, Jaguar, and Comedy Central, whose ads will only run in conjunction with licensed content. Initial content partners include Sony/ATV and BMG, the distributors INgrooves and Seed, the comedy site Funny or Die, and a number of independent artists, including GoldLink.

Universal, Sony, and Warner still have not completed licensing deals, and part of the reason is that there’s so much content on SoundCloud that’s difficult to determine appropriate licensing terms for. It’s still unclear how revenue generated by material such as DJ mixes, mash-ups, and remixes is to be split among the respective content owners.

You can check SoundCloud’s FAQ on ads here.

[h/t New York Times]

Related Posts

News
News

Trouble At SoundCloud? They Just Laid Off 173 Employees and Closed Two Offices

News
News

Jay Z Ethers His Own Catalog From Apple Music and Spotify

Music
Music

Gorillaz Shake Up Your Christmas Party with Spotify Playlist

Music
Music

Report: SoundCloud May Have Only 50 Days To Live

News
News

Prince’s Catalog to Arrive on Streaming Services, Sort of

Ad

Latest News

Music

PREMIERE: Booda French “Masterpiece”

King Kashmere whippin' the pot
Features

It’s The Most Gluttonous Time Of The Year!

Happy Thanksgiving
Arin Ray Music

PREMIERE: Arin Ray “Stressin”

The Cincinnati singer keeps it real about relationships
Video

Smoke A Blunt With Trippie Redd

Let's go to Mars!
Music Video

PREMIERE: Magno Garcia ft. King Author & Code 9 “Raise the Conscious” Video

Produced by Giallo Point
Knowledge

Knowledge Darts Vol. 28: Every Action Has An Equal And Opposite Reaction

Let's talk about something that really matters
Music Video

PREMIERE: Skipp Whitman “Slow Down”

"Momma told me slow down, I'm about to lose my control"
Art

Lil Peep Vigils Occurring All Around the World

Pink candles for the Goth Angel Sinner
Music Video

PREMIERE: Baby Bash & Frankie J “Candy Coated Dreamer” Video

"She did it all for the dream"
N.E.R.D News

‘No_One Ever Really Dies’ Will Be Here for Christmas

The 7-year wait will soon be over
Music

PREMIERE: KXNG Crooked “The MAGA Continues” + Horseshoe Gang “Shoes Fall Off”

COB is up in here!
Video

Open Space: Lud Foe

From the real side of Chitown
Music

PREMIERE: Agallah ft. Edo G. “Synthetic Thugs”

This duo aren't pulling their punches
ghostface-killah Features

The 36 Best Ghostface Killah Songs, Ranked

"This is real lizzife, ain’t nothin sweet God"
inspectah deck Features

The 36 Best Inspectah Deck Songs, Ranked

“I’m a modern day Langston Hughes, my slang rules”
Music

Nicki Minaj and 21 Savage Join Farruko on “Krippy Kush” Remix

Latin trap arrives on the mainland