Soundcloud’s bumpy transition from community and artist-driven service to money-making machine has taken a turn for the worse after it was revealed that Sony has begun removing its content from the music streaming service.
Last year, it was reported that Warner Music had signed an agreement with Soundcloud to not sue them for copyright infringement, as long as Soundcloud pursued a monetisation plan and handed over a decent chunk of equity.
It was thought the two final majors would follow suit soon after, but it has been revealed that Sony isn’t impressed with Soundcloud’s monetisation plans so far, or their offer of equity, and has begun to remove music from the site from its biggest stars.
“We are in ongoing conversations with major and independent labels and will continue to add partners to the program,” says SoundCloud in a statement. “We’ve always put control in the hands of creators, and anyone who makes music and audio can decide when and how they want to share it with fans, allowing artists to essentially broadcast out to the world the availability of new content.”
Soundcloud’s monetisation strategy to date hasn’t been all that revolutionary, instead of running pre-roll ads a la Youtube or Spotify they’ve decide to pursue sponsored sounds from a limited group of select partners, which to date has seen the music sharing service pay-out a rather meagre 2 million to its partners.