Until now, the company derived its revenue primarily from Pro accounts, but as of August 21st the company introduced a new strategy designed to give users new tools for uploading and tracking engagement, growing Soundcloud's audience, and introducing adverts into the platform.
Soundcloud will implement a new partner program called On Soundcloud that provides a brand new Premier tier, which is invite only at the moment and includes advertising from 5 different components - native (not sure what that one is yet), audio, display, channel sponsorship and contests. The first five sponsors are Red Bull, Jaguar, Sonos, Squarespace and Comedy Central.
What's interesting is that Soundcloud doesn't have signed deals with the major labels in place yet, but has decided to launch anyway. That said, the company is said to be in talks about the agreement, and expects to have something in place by the time it rolls out its new subscription service. For the moment, the program is only available in the US.
Bottom line - Soundcloud is trying to become an audio-only YouTube, and having a revenue model in place in order to pay artists for their participation goes a long way to that end.
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