SoundCloud Might Adopt Paid Subscription Model, Leaked Document Suggests
A recently leaked contract between SoundCloud and independent music publishers suggests that the former may become a paid subscription service in the future.
Berlin-based startup’s decision to pay royalties to labels can be seen as its attempt to legalize its business.
If the proposed contract gets signed, SoundCloud will be able to keep offering its services with additional legal leverage.
At present, the rich repository of audio music is reportedly in danger of losing part of the content to copyright owners, as Publishing companies have begun contemning its operations because it doesn’t pay to the artists and labels.
Several record companies including one major record label, Sony, have already pulled huge chunk of content from the streaming service.
If, as purposes the document, SoundCloud successfully strikes deals with major record labels, including Warner Brothers, Sony and Universal, it can avoid losing more content.
Currently, users can stream unlimited music on SoundCloud for free. If the company commits to pay artists and labels, however, it will start charging the site’s visitors as well.
According to the leaked document, the streaming service has already planned to offer two ad-free subscription based plans, which will complement its ad-supported free tier.
One subscription tier has been codenamed “Additional Services.” Subscribers of this offer will get access to limited catalogue of audio and visual ad-free content. Users will be able to get access to even more music with A “SoundCloud Full Catalog Subscription Service,” reports a technology news source.