SoundCloud is an popular online audio distribution platform based in Berlin, Germany that enables its users to upload, record, promote and share their originally-created sounds. In July 2013, it had 40 million registered users and 200 million listeners. Now this Popular and free SoundCloud is ready for Ads to bring revenue.
SoundCloud has announced that it will be bringing ads to the service. The move follows rumors from earlier this year which suggested that the music service was close to signing licensing deals with major record labels. Millions of people use SoundCloud to listen to music and audio for free. As it is popular the revenue due to Ads will increases automatically.
It also mentions that the service is available only in the United States for the time being, although it is working on rolling the feature out to more countries and global artists in the near future.
Most of the revenue generated from ads will be directed back to artists and record labels. For now, SoundCloud has only mentioned that users may occasionally hear an ad, without clarifying whether advertisements will be limited to free users or whether pro users will also be served ads.While SoundCloud’s relationship with record labels has been contentious, it is believed that the music service is offering labels an equity stake provided they do not sue SoundCloud over past copyright infringements. These are the changes that takes place in the SoundCloud.