SoundCloud’s monetization plan may be years away from paying the artists
‘What electronic artists are going to get out of SoundCloud in the next few years is close to nothing.’
Ultra Music’s owner Patrick Moxey is standing beside Sony regarding the label’s recent SoundCloud impasse. In a recent interview during IMS Ibiza, Moxey exposed some hard truths about the Berlin-based streaming service. He states that the rate at which SoundCloud plans to roll out their ad sales team will take “two to three” years to develop the revenue required to pay artists — a timeline that is far too slow for labels to see their returns.
It is true that many of Ultra’s artists have built their careers on the platform and Moxey and his team are very pro-SoundCloud, “[SoundCloud] is fantastic because there are 100,000 creators uploading new music every night.” The problem is payment; “But what do they pay artists and writers now? Little to nothing.”
So who is paying? Spotify obviously and Moxey is in full support of the streaming giant; “They are paying the artists, writers and labels properly. They are doing a great job, they are growing exponentially.”
Update: Ultra has reached out to confirm that their music and artists will remain on the platform.
Via: Music Week