SoundCloud To Introduce Advertising

Artists to receive royalties from plays...
SoundCloud

One of the most popular music streaming services online, SoundCloud has faced repeated calls to pay artists royalties.

Reportedly, talks between the service and major labels such as Warner and Columbia have been ongoing for months, with the imprints suggesting obtaining equity in the company in exchange for not pursuing legal claims against copyright violations.

Now, it seems that SoundCloud is ready to act. Music Week reports that the service will begin to roll out an advertising based model, with the monies then being delivered back to artists in the form of royalties.

Founder Alex Ljung sent a message to users this morning (August 21st) saying: "We’re laying this foundation by initially inviting a small group of creators to become Premier partners in the On SoundCloud program, enabling them to make money on the platform.

Over time we will roll this out across the creator community." "To make this possible we’re introducing advertising from select brand partners to SoundCloud. When someone sees or hears an ad, they’re supporting an artist. We will include ads gradually and bring on more advertisers as we grow On SoundCloud."

These 'select brand partners' are thought to include Red Bull and Comedy Central, with the company set to roll out this model in the United States first as SoundCloud is "focused on launching and perfecting the program" in its largest market.

Intriguing times. SoundCloud has become an enormously popular streaming service, estimated to serve 175 million users per month - check out the Clash account HERE.

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