So it finally happened, on March 18th Soundcloud finally stuck a licensing deal and with one of the biggest music company’s ever, Sony Music. You can say bye bye to the free streaming service soundcloud has offered as it plans to launch its new subscription service later this year.
Soundcloud previous made a deal with Warner music group, universal music group and a network of independent labels called Merlin. Sony Music was the last deal that needed to be closed with soundcloud, so now that soundcloud has majority of the music industry under its belt they can move forward in figuring out how to get new users but more importantly 175 million old users that were used to streaming music for free to sign up for a monthly subscription . This might be tough, but soundcloud has no other choice but to monetizing there service as all 4 major labels will have there hands out looking for there return in there investment.
The rumor is soundcloud will be asking for $10 month in order to stream music using there platform. Spotify also offers a streaming service at the same price of $10 month, but with a deal of 99 cents for 3 month, soundcloud will have to match up or beat that offer in order to compete with Spotify.
In order for soundcloud to win over new users they will have to offer a month or more of free service.
This deal does not come with just negative aspects, it also has benefits, For artists uploading there music they can now make money with there songs on soundcloud. Artist will also be able to access analysis, data and soundcloud promotion tools to see who,what,when and where there tracks and profile are being viewed and to form a deeper relationship with fans.
My personal opinion is soundcloud is selling there soul, or business so to speak; as soon as your favorite artist drops a song everyone knows to go to soundcloud to listen to it first, now that you have to pay monthly my guess is users will move on to the next platform for free streaming