Leaked SoundCloud contract divulges upcoming business strategy
While Soundcloud has remained the go-to place for a large portion of the music industry to upload their work, the company has continued to struggle to monetize. Now after Ultra Music’s owner Patrick Moxey commented on the Berlin-based company’s timeline for its business strategy, a new leak has revealed what is reportedly Soundcloud’s plan.
Two different tiers exist, as SoundCloud will pay labels either 10.5 percent of its total revenue, or 22 percent of its revenue from sound recording rights. The first tier will give labels $0.18 per user per month, but only if it’s higher than the compensation agreements between label and SoundCloud. The second, reportedly titled the “Full Catalog Subscription Service,” will give labels $0.80 per user. The big three of Sony, Universal, and Warner were left out of the leak, as separate deals with each of the three are expected to quickly follow.