Report: SoundCloud Eyes A Subscription Service
July 23, 2015 at 12:01 PM (PT)
Online music distribution platform SOUNDCLOUD will launch a subscription service to generate more revenue later this year, the WALL STREET JOURNAL reports. Co-founder/Chief Technology Officer ERIC WAHLFORSS made the announcement in advance of imminent royalty demands from record labels and publishers.
SOUNDCLOUD -- a website and app where consumers can listen to more than 100 million tracks uploaded by artists and DJs -- attracts about 175 million unique visitors per month. It costs nothing to listen to the service, but there is a fee to upload music. The company also earns money from advertising from the likes of PEPSI, JAGUAR automobiles and AXE deodorant.
WAHLFORSS didn't specify what subscribers will get that non-paying users won’t.
The additional revenue would ostensibly be used for music publishers seeking to get royalties for tracks that are part of a remix or DJ set. SOUNDCLOUD has already struck deals with WARNER MUSIC and MERLIN, the latter which represents more than 20,000 smaller labels.