In the wake of streaming service Soundcloud‘s recent deal struck with major record label Sony, the platform has just revealed details for the upcoming paid tier on which its partnerships and financial future rest. According to Billboard, users on both of Soundcloud’s paid tiers will soon be able to upload specific, authorized remixes and DJ mixes. Every upload will be scanned for samples or copyrighted material by the site, distributing appropriate to compensation to the various rights holders if any revenue is generated.
In a marketplace that has become more cutthroat and fast-paced as the weeks wear on, services like Soundcloud are finding themselves in a more desperate situation to stand out from the pack. With Apple Music to soon host bootlegs and mixes, and others like Pandora, Spotify, Amazon and Youtube all placed variously along the spectrum, the need to differentiate themselves and appear as the most appealing option to the pool of potential users is growing more dire.
Currently, Soundcloud has over 175 million consistent users. By the time payment becomes mandatory, said Midia Research analyst Mark Mulligan, that number may be reduced to under 9 million. Even then, however, Soundcloud would still emerge as a significant competitor in the marketplace.