On SoundCloud

Today, our portfolio company SoundCloud is announcing its content partners program, called On SoundCloud.

For creators, there are three offerings, Partner, Pro, and Premier. Anyone can be a Partner. For a small monthly fee, you can upgrade to Pro. And if you are really serious, then you can become Premier and make money on SoundCloud.

For listeners, there will be two tiers. A free, advertising supported offering that values artists. As Alex Ljung, founder and CEO of SoundCloud says here:

Every time you see or hear an ad, an artist gets paid

There will also be a subscription offering that will be ad free and offer other features for listeners.

For brands, SoundCloud becomes a popular social platform where they can engage with creators and listeners. Here’s more on SoundCloud’s offerings for brands.

Here’s the thing that many people miss about SoundCloud. It’s not like iTunes, or Spotify, or Pandora. It’s a peer network with a social architecture that emphasizes engagement and sharing.

Like Twitter and Tumblr and a number of other popular social platforms, SoundCloud treats everyone as peers in its network. My profile is almost identical to an artist’s profile on SoundCloud. I can do the same things they can do and they can do the same things I can do. The same is true of a brand’s profile.

This social architecture encourages engagement, sharing, commenting, and favoriting. It’s like the artists, listeners, and brands are all hanging out together at one big party.

These social peer networks treat advertising very differently. The ads are native. On Twitter, the advertising is a Tweet. On Tumblr, the advertising is a post. On SoundCloud, the advertising is a track. You see the ads in your feed and you choose to engage with them if they are inviting. In the best case, you enjoy them so much that you favorite or reblog/retweet them. And brands can sponsor/promote tracks from other users. Think of Red Bull sponsoring and promoting artists on SoundCloud.

The New York Times has an article today about On SoundCloud.  It covers all the challenges that SoundCloud has overcome in getting to this place. It’s been a ton of work for the team at SoundCloud to get this launched, and there is certainly a lot more ahead of them as they undertake to get every artist On SoundCloud.

I am very optimistic that will happen because this network of 175mm mobile listeners all over the world connected together and sharing the audio they love with each other is too powerful to ignore.