Music site SoundCloud to start paying artists

Aug 21, 2014

SoundCloud said Thursday that it will start paying artists and record companies whose music is played on the popular streaming site, a move that will bring it in line with competitors such as YouTube and Spotify.

Berlin-based SoundCloud boasts some 175 million unique listeners a month, but so far those who upload tracks to the site haven't received money. To fund the payments SoundCloud is introducing ads, the revenue from which will be shared with musicians and rights holders.

"This is something we've been wanting to get to ever since we started the company," SoundCloud founder Alexander Ljung told The Associated Press. He said artists will be able to decide on which tracks the audio and display ads can appear, and initially only content played in the United States will be counted.

The program will start with 20 partners ranging from major record companies such as Sony/ATV and BMG to independent artists; eventually everyone will be able to join. Advertisers include Red Bull, Jaguar and Comedy Central.

Despite tying in record companies, SoundCloud has no plans to shift away from its support for new, original music, said Ljung. Instead, it hopes that young artists will see it as a way to start earning money with their music early on, he said.

"The more valuable we make (the site), the more they will use it," said Ljung. "We don't have a perspective for going out and buying a load of content."

Listening to music on SoundCloud is free. However, users who don't want to see or hear the ads will be able to get a subscription that will remove them, he said.

Explore further: Twitter eyes music-sharing service SoundCloud

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Twitter pulls out of SoundCloud talks

May 20, 2014

Twitter has pulled out of discussions to buy the German-based music-sharing service SoundCloud, The Wall Street Journal said Tuesday.

YouTube to launch music service amid indie dispute

Jun 18, 2014

YouTube will launch a new subscription music service, the company acknowledged Tuesday after being dragged into a public dispute over royalties that will result in the blockade of some independent artists' music videos.

Rdio to pay artists $10 per new subscriber

Oct 02, 2012

(AP)—Music subscription service Rdio (ARDEE-oh) is looking to dispel the notion that streaming services underpay artists for their work. Starting Tuesday, it will start paying musicians $10 for every person they convince ...

Recommended for you

Facebook dressed down over 'real names' policy

Sep 17, 2014

Facebook says it temporarily restored hundreds of deleted profiles of self-described drag queens and others, but declined to change a policy requiring account holders to use their real names rather than drag names such as ...

Yelp to pay US fine for child privacy violation

Sep 17, 2014

Online ratings operator Yelp agreed to pay $450,000 to settle US charges that it illegally collected data on children, in violation of privacy laws, officials said Wednesday.

User comments : 0