SoundCloud comes with ads and subscriptions

Aug

21

2014

The streaming audio site SoundCloud has started displaying advertising in its apps. The company also comes with subscription with no ads are displayed for a fee. The step is the result of a deal with a variety of labels.

SoundCloud is 175 million monthly listeners in their own words after YouTube the largest platform in the world to listen to music. The six-year-old service offers the user a lot of exclusive music content and is used, by emerging artists as a possible stepping stone to success. However, SoundCloud has struggled to make money and the service was increasingly targeted by record labels who argued that no duties were paid. This was mainly caused by the large number of uploads music files to the service.

SoundCloud In an effort to become profitable, SoundCloud signed a license agreement with a number of record labels. SoundCloud promises henceforth to be paid to labels and artists. Royalties from Additionally, the company will show ads in his app. In time, the company also comes with subscriptions. Subscribers can then turn off the advertisements.

Part of the deal that SoundCloud has concluded that the record labels get a share in the company. The labels have also promised that they will not sue for infringement of copyright in the past. Streaming audio service

The question is whether the Berlin-based SoundCloud his popularity knows how to keep the ads are going to show and comes with subscription models. Alex Ljung, one of the founders of the audio site, let to The New York Times, however, know that he expects its users will accept, partly because they realize that the artists now receive money the ads.

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