A Leaked Contract Suggests a Plan for a Paid SoundCloud Subscription Service

To this point, SoundCloud has appeared to be separate from the ongoing music streaming wars. The website has instead become a haven for up-and-coming rappers, producers and DJs, who used the no-frills interface and intuitive search and recommendation functions to get heard and promote their friends and collaborators. Now, however, they seem to be testing more corporate waters. According to a leaked contract obtained by Fader, SoundCloud is hoping to employ a three-tiered system: basic use will remain free; "Additional Services" members will enjoy a listening experience free of advertising, to some extent, but will not have access to SoundCloud's entire library ad-free or at all; “SoundCloud Full Catalog Subscription Service” would cover the entirety of SoundCloud's music base.

The extent of that library is another issue at hand. The contract appears to be a template for agreements with independent music publishers, which guarantees the publishers income even if subscription numbers are low. The deal includes a 'most favored nations' clause, meaning that if other parties--say, the major labels--sign on with SoundCloud for better terms, those terms will retroactively kick in for earlier signees. (This holds true for terms, not the advance amount; the leaked contract promises $350,000 up front, where that amount would presumably be much higher in a deal with a major label.)

Read the entire contract below:

SoundClound Licensing Contract With National Music Publishers' Association by Josh Constine

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