SoundCloud is implementing a new subscription service
SoundCloud has undergone a number of internal changes as of late. In August 2014, the music streaming platform introduced ads, in addition to announcing its intention to create a paid subscription service. In April, it partnered with YouTube’s copyright detection company and come June, royalty deals with 20,000 record labels had been inked. Nearly a year later, the site’s plans to install a paid subscription service have finally come to fruition.
Currently, the music distribution site earns revenue by two methods: uploading artists and, in the US, paid advertising from major outlets like Pepsi, Jaguar, and Axe. Subscriptions will become Soundcloud’s third source of capital, although Chief Technology Officer Eric Wahlforss has not detailed the difference between its paid and free service.
In an age where major competitors like Spotify, Apple Music and Tidal come into play, SoundCloud has sensed the need to step up its game. Subscription plans are expected to be offered at around $10 per month, which will help the platform combat the heated battle between music publishers and streaming services.