SoundCloud Monetization: Why It's Good For The Music Community
Three years ago, The EDM Network embarked on a journey to create a platform that would provide a voice for talented artists around the world. What started as a single, genre-specific SoundCloud channel has since broadened to encompass an entire industry. Through our close working relationship with SoundCloud, we have built a vast network of over 20 channels dedicated to many of the most prestigious properties in dance music. Today, SoundCloud has announced a new service, “On SoundCloud,” which will allow content creators (artists, labels, etc.) to make money off of the advertisements placed on specific content.
With this initial announcement, SoundCloud has selected a small number of content aggregators to be the beneficiaries of this program as Premier partners. Alongside the likes of Sony, Funny or Die, and INgrooves, we are excited to announce that The EDM Network is one of the few to be invited to this program. Each month, we log more than 200 million plays from artists across a variety of genres, many whom don’t have a significant fan base behind them.
SoundCloud’s announcement, in the form of a blog post and an article in the New York Times, has unsurprisingly sparked a massive debate among the music community. Ultimately, monetizing SoundCloud was a necessary step for the platform, and has overall generated a lot of excitement.
Artists and labels that are working hard to create and promote music will be getting a cut of the money generated from the advertisements on their content. This puts more money into the hands of the content creators, which is well deserved. As a result, it will provide producers with more incentive to upload their tracks to SoundCloud.
There are going to be several different types of advertisements placed on content, with things like banner takeovers and product placement likely making up the majority of those ads. Audio ads will likely appear as well. Due to the uniqueness of SoundCloud’s entirely audio platform, a 4-minute image impression displayed on the banner of a track will be very effective. Similar to Spotify, SoundCloud has announced they will eventually allow users to pay for subscriptions if they want to skip these ads.
Overall, the user experience on SoundCloud will not change drastically. This evolution will allow content creators, including your favorite producers, to actually earn money from SoundCloud. Most importantly, they will be doing it without forcing you to pay for their music. SoundCloud’s decision to monetize has turned it into a platform that will greatly benefit both producers and fans. This mutually beneficial relationship has developed SoundCloud into a meaningful two-way platform, and it now has the infrastructure to provide the world with beautiful music for many years to come.
The EDM Network is extremely excited to take part in this journey with SoundCloud. Over the next few weeks, we will be announcing our initiatives for content partnership. We're looking forward to implementing monetization so that we can effectively help improve producers' careers.