Soundcloud reportedly has a contract in the works for independent music labels and publishers that will transform the music sharing site into a tiered subscription streaming service.
According to the leaked document, users will have three options: the most expensive “Full Catalog Subscription Service” tier (offering exclusive and unlimited content), the “Additional Services” tier (ad-free with some extra content), and the lowest level (with limited content), which would remain free.
It seems like an attempt to stop big labels like Sony from pulling their artists’ music from the site, as well as, of course, a way for Soundcloud to turn a profit. On top of the $350,000 Soundcloud will pay labels up front, the labels will get royalties based on how often their music is streamed and at what tier.
The entire leaked contract is below. You can read it… if you really want to.