SoundCloud has added advertisements to its platform for the first time ever and will also launch a paid subscription service sometime in the “coming months” that will remove them. This comes after the company started talking with music labels over royalty payments and the like in order to avoid being sued for incidents of copyright infringement.
The new ad platform is called On SoundCloud and already has various companies on board like Red Bull and Comedy Central. In the beginning, the ads will only play on licensed content from partners such as Sony, music distributors INgrooves and Seed and a few indie artists. In addition to that, only US users will be getting ads for now.
On SoundCloud will be divided into three tiers for advertisers: Partner, Pro and Premier. The first one is free and has some limited features while the tools at the partners’ disposal increase in the last two tiers. This is the only way SoundCloud can hope to earn more money and it is definitely a good time for them to do this. There are tons of people who still use the service and the company will strike two birds with one stone here, tackling copyrights and revenue at once.