Soundcloud is one of the last free streaming services around, but that may change soon. According to some leaked contracts that surfaced today, Soundcloud has been in talks with labels and have plans to monetize their service by introducing ads and launching paid subscription services for listeners.
The leaked document outlines three main tiers:
1) “SoundCloud Full Catalog Subscription Service” – would include the most music but would cost users the most
2) “Additional Services” – less expensive than the first tier where users would pay to remove ads, but still wouldn’t have access to the full catalog
3) This last tier would remain free
So, how does this make the labels money? They’d get paid a percentage that varies based on the tiers users subscribe to. For each person who signs up for “Additional Services,” they’d get $0.18 a month and $0.80 a month for each “Full Catalog” user. SoundCloud is also offering an advance of $350,000 to each independent label and publisher.
Check out the contract below.