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SoundCloud Looks to Make Money for Artists Via Ads

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Taking a page from basically every music-streaming service available, SoundCloud is launching an ad platform.


The effort includes a new creator partner program, On SoundCloud, which enables users to make money from their participation in SoundCloud.


'As artists ourselves, Eric and I started SoundCloud with a simple vision,' CEO Alex Ljung said in an announcement. 'We wanted to develop tools for creators, help them reach fans all over the world, and shape a way we could pay the creators who fuel the growth of SoundCloud.'


According to The Guardian, artists on SoundCloud upload their music for the exposure and data on their listeners, but do not currently receive any sort of payment. But now that SoundCloud has grown, it's exploring ways to compensate artists on the site.


On SoundCloud has three tiers: Partner, Pro, and Premier. Partner is for those who are just starting out: 'share your first track, receive feedback and get basic stats,' SoundCloud said. Pro will cost money, but offers 'more upload time, advanced tools, features like Spotlight and detailed stats.' Premier partners, meanwhile, can make money from their tracks through ads. Audio ads will only be served on the content of Premier Partners with their explicit consent, SoundCloud said.


For Partner and Pro levels, meanwhile, SoundCloud increased upload time by 50 percent; 'you'll get it automatically if you already have a Pro or free account,' the company said.


Premier is currently invite-only, and artists only get paid on songs that are played in the U.S. 'We'll open up the program to more creators and more countries as fast as we can,' SoundCloud said.


For those who don't like the idea of ads, Ljung stressed that 'when someone sees or hears an ad, they're supporting an artist.'


For those who aren't excited by the idea, however, The Next Web reports that a subscription service that eliminates ads will launch in the next few months.


'Everybody at SoundCloud is really excited about bringing this creator program to you,' Ljung said. 'We often hear people say, 'I'm On SoundCloud.' Now we're happy to be able to offer even more for the millions of creators who have made it the best place in the world to share and discover music and audio.'


SoundCloud opened to the public in late 2012, and just recently revamped its iPhone app, which was designed and rebuilt from scratch, though without the previous option to record and upload audio files through the app.


In May, rumors tipped an acquisition by Twitter, possibly in an attempt to boost its own user base by adding SoundCloud's 250 million subscribers. No deal has been announced, though.


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