SoundCloud has been trying to figure out how exactly to capitalize off its 175 million monthly users. The company has finally signed off on a deal that works in favor of everyone. Since the platform didn’t operate with formal licensing contracts before, it didn’t need to pay royalties.
The agreement with Merlin will allow SoundCloud to continue to host music from artists that are signed to nearly 20,000 labels. Alexander Ljung, one of the founders of SoundCloud said
“Independent creators have always been at the core of SoundCloud, and with this partnership we’re thrilled to extend new revenue-generating opportunities to thousands of independent labels,”
Advertisements were also just added to the site this year.