SoundCloud is set to introduce advertising to its service as part of a new licensing deal with entertainment companies.
The New York Times also reports that artists and labels will soon be able to collect royalties while a subscription service similar to Spotify is on the way, so subscribers will be able to listen without to music on SoundCloud without adverts.
This follows the news in April that the platform was holding copyright discussions with major labels which were unhappy with the lack of copyright regulation on the streaming service.
SoundCloud’s chief business officer Jeff Toig spoke to the New York Times, saying SoundCloud would sign licensing agreements with music companies to run advertising, with the majority of revenue from those adverts going to the content provider such as the artist or label.
Red Bull, Jaguar and Comedy Central have been confirmed as the first advertisers while content partners include Sony/ATV and BMG.
Despite talks being in place between SoundCloud and Universal, Sony and Warner, licensing deals are yet to be agreed. All four parties declined to comment on the talks.
