Published Aug 21, 2014There's no denying that SoundCloud is one of the most popular music services on the web. With an estimated 175 million users, it's a breeding ground for artists and a source of endless discovery for users. Good things don't come for free, however, and the site is now looking toward introducing new revenue streams.
According to the New York Times, the site has launched a new licensing deal with Sony/ATV and BMG that will incorporate advertising so that artists and labels can receive royalties.
The site is negotiating with other major labels and some independent labels. Rumour has it that they will offer equity stakes in the company and, in exchange, the labels will not sue SoundCloud over any previous copyright infringements.
As it moves toward integrating ads, SoundCloud will eventually roll out a subscription service, where paying users will be able to enjoy the music ad-free.
These developments follow news that Twitter was considering buying SoundCloud, but that deal didn't pan out.
UPDATE: As Billboard reports, SoundCloud will introduce a program called On Soundcloud, which will allow invite-only "Premier" members to monetize their content by incorporating pre-approved advertising.