Soundcloud introduces royalties and advertising

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Soundcloud has announced plans to introduce advertising on it’s site enabling users to collect royalties.

An email sent from Soundcloud founder Alex Ljung has stated: “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.”

This evolution has come about through a new licensing deal with entertainment companies, including Sony and BMG. Soundcloud’s Chief Business Officer Jeff Toig has said that most of the revenue from ads will go to the content provider, however precise details are yet to be confirmed. Advertisements will most likely be from Red Bull, Jaguar and Comedy Central, an option to skip these ads will be available by having a Spotify-style subscription to Soundcloud. Soundcloud have stated that only those involved with the On Soundcloud program can refuse consent for ads on their uploads. 

Soundcloud has been involved in talks with major labels for quite some time now, these talks emerged after companies demanded equity of the Soundcloud company in return for not suing over copyright infringements.There have also been rumours that Twitter was going to buy the company but it has now been confirmed that they have pulled out. 

Written by Alex Lewis