BERLIN—Music distribution platform SoundCloud plans to launch a subscription service for consumers later this year as an additional means of generating revenue, said co-founder and Chief Technology Officer Eric Wahlforss, as royalty demands from record labels loom. SoundCloud offers a website and app where consumers can listen to music uploaded by artists and disc jockeys. The service, sometimes described as a YouTube for music, provides not only original tracks but also remixes and DJ sets. SoundCloud offers therefore more than million tracks. For comparison, streaming service Spotify, which focuses on original tracks, says its library has more than 30 million songs. The broad variety has made SoundCloud one of the most popular music services with about million unique visitors per month. Listening to music is currently free while SoundClouds generates revenue from uploading artists. In the U.
Trippin Jaguar’s tracks
JaguarTree [Merkaba Music]’s tracks
Red Bull and Jaguar will be among the first five advertisers on SoundCloud, the six-year-old audio platform that began running ads on Thursday as a way to compensate artists and labels. Other advertisers, including Squarespace, Comedy Central and Sonos, will began running ads as part of Premier, a new invite-only subscription SoundCloud tier that promises to compensate artists and labels. Users get three hours of uploads free per month. The three major labels are not part of the plan at this point. It's actually not about the legal stuff. Advertising will run in five different categories on the site. The first is "native," in which advertisers pay to promote content in the stream. Red Bull ran one such ad on Thursday:. Dan Gerber, head of sales for SoundCloud, said the native ads will be similar to Twitter's Promoted Profiles and Promoted Tweets; they are designed to raise awareness among SoundCloud listeners. Other ad units include:.
Jaguar Jonze’s tracks
SoundCloud is the ubiquitous wild child of the digital music world. Without paying artists or record companies, it lets people freely upload and stream any kind of audio, and musicians have embraced it as a way to share their hottest work with fans. Even in a market saturated with competitors like iTunes and Pandora, the six-year-old SoundCloud has managed to reach a huge scale with a catalog of unusual, often exclusive content. Now SoundCloud has decided it is time to grow up. On Thursday, as part of a new licensing deal with entertainment companies, SoundCloud will begin incorporating advertising and for the first time let artists and record labels collect royalties. Eventually, it plans to introduce a paid subscription that will let listeners skip those ads, as they can with Spotify and other licensed services. In many ways the move is a reaction to industry pressure to license content and produce revenue.
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