Having always been a go-to streaming site for the latest releases and newest podcasts, SoundCloud and its rapid takeover of peer-to-peer music sharing can be attributed to the Berlin Company’s first two phases of its business model. While the first two phases, building tools for creators (producers and artists) and then to help these creators build an audience through SoundCloud’s service, are what have attracted millions of users to the platform, the third phase could be what drives them away.
While they attest that the third phase of the business model is to allow creators to make money from their work and through their platform, its underlying implications make their third phase a double-edged sword. It comes with relentless crackdowns on tracks that infringe on existing copyrights as well as pesty advertisements spattered across the site. Many of us have come to love the site for its endless rabbit holes of undiscovered bootlegs and underground mashups, but these could quickly start to disappear (remember what happened to Kaskade?).
This is all being launched behind SoundCloud’s partner program, ‘On SoundCloud’. SoundCloud’s Chief Business Officer states that this partner program will be a way for “. . .all creators to have the opportunity to make money through the platform and we’ll be working to expand the program globally over time.” Some large companies such as Red Bull, Jaguar, and Comedy Central have received exclusive invites to try out the service, but some of the music industry’s biggest labels are already rumored to be looking into the service as well.
So what do you think? Will you stay with SoundCloud despite the adverts and copyrights, or will you turn to other upcoming services like ToneDen for your music streaming needs?