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SoundCloud Phase 3, Ad Placements and Royalties for Artists

August 29, 2014


An article I found on theguardian.com  has broken news that SoundCloud, everyone's favourite music streaming website, will be running ads before the music can be played similar to that of YouTube and other streaming sites.


Find the article here: http://bit.ly/1neon65



After years of criticism from labels and other industry exec's who have questioned and insisted SoundCloud eventually be paying royalties for the right to stream music the way they have been. In fact, if you're like me, you have a pro or premium account that you in fact pay for the right to use and upload as much content as you'd like. So, you the artist aren't just not being paid for SoundCloud's use of your content, but you the artist are in fact paying for them to have music worth streaming and networking with.


I'm not knocking their system. I love it. If I'm going to make my music available then it should be as simple and straight forward as SoundCloud has made it for all users to take advantage of. Their embedding codes work great on websites, it plays on any format (computer, smart phone, tablet) with seamless integration, the ability to create playlists of songs and hide some content for you to distribute at will without worry of the general public listening to it first, its a fantastic system. Nobody has come close to being so user friendly in the online streaming market.


The opportunities are also a fantastic bonus. They have channels and networks that are tailored to fit a variety of genres, especially in the indie and new music communities. Anyone with a new song to debut can have it heard by other artists of the same ilk and fans of similar interests.


With all of these wonderful benefits then the question begs to be asked, are they worth paying a subscription fee for? I mean, if SoundCloud is going to start taking advertisers on their site, and obviously collecting ad revenue from this to pay some monies in royalties out to the artists, then are we calling it even? If you have enough plays then is your subscription paid for?


I'm curious to see how this system is going to turn out. After all, outside of YouTube which currently has a deal with SOCAN to retrieve royalties for artists (note: ASCAP and various other PRO's don't currently have a deal in place yet for that purpose), services such as Spotify, or Rdio don't currently pay royalties to the artists, so this type of setup if it's successful could be president setting for the industry.


What do you think?

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