Soundcloud to Implement Subscription Service
Soundcloud has had some major challenges in maintaining it’s reputation with listeners and labels alike. Battling for rights of material and royalty queries, the streaming platform seems to be coming out the other end with solution that will continue its growth of popularity with users at both ends.
In August 2014, the introduction of adverts, in addition to announcing its intention to create a paid subscription service created a bit of stir within social media. However, practicality seems to have prevailed with usage increasing over the past year. It’s partnership with YouTube’s copyright detection company in April 2014 and in June 2014, royalty deals with 20,000 record labels being inked, Soundcloud’s future almost seems brighter with the changes. Now, nearly a year later, the site plans to install a paid subscription service, similar to Spotify’s format.
With major competitors like Apple music, Spotify and Tidal in the market, SoundCloud has been incentivized to strengthen its structure and plan. Expected to cost around $10 per month, it’s expected this will will help the platform diffuse the heated battle between music publishers and streaming services.
The music distribution website currently creates revenue through two methods: uploading artists and, in the US, paid advertising from the likes of Pepsi, Jaguar, and Axe to name a few. The subscription element will become Soundcloud’s third source of capital revenue, although the difference between the free version and the proposed subscription service is still unknown.