The official date for streaming service Soundcloud’s subscription service launch has just been pushed back, shifting their reported timetable from July to October of this year, according to Digital Music News. The announcement comes on the heels of the company’s recent acquisition of ex-NBC VP Alison Moore as their new Chief Revenue Officer, who has said that producing a subscription-based model for the site is of top priority to her.
Ever since the solidification of Universal Music Group’s deal with the service in January, the race has been on for Soundcloud to roll out a tier-based subscription feature and fulfill their end of the bargain. One of the core stipulations of the licensing agreement, you’ll remember, was for the site to implement such a system before the end of 2016. Although their initial estimate predicted its launch in July, it appears that Soundcloud has now pushed it back to later this year.
According to earlier reports, UMG will offer small leniency periods if it’s been shown that Soundcloud has made tangible progress in developing the platform. How they’ll react to this new announcement waits to be seen.
However, if the record label decides that the progress has not met their quota, the streaming service may be sacrificing one of the most crucial sources of their income. Regardless, the pressure is on for Moore to construct a suitable subscription platform, beginning just days after she’s been brought onboard.
Source: Digital Music News