We have seen Youtube monetise videos for channels which reach a certain standard, and provide the channel owners a share in the revenue. By all accounts this has been a successful move by youtube, and for the channel owners who are earning from video plays. The big shake up we noticed in the asian music scene was labels pushing their own channels, and removing videos uploaded by artists and promoters (who the labels had sent the videos to).
Now SoundCloud seem to be following the same monetisation route, by allowing artists/labels who upload their content an opportunity to earn with another revenue stream. This steam is not quite the same as how youtube have monetised (plays), rather based on those who would like to use the music in a public manner such as on a website, as on hold music , for an advert etc; the opportunity to license the music.
The system will be quite straightforward: each user will be able to install a ‘license’ button from Getty Images Music on their SoundCloud, for tracks that they want to monetise. Those who want to license the track just click the button and send a request.
And what if the user’s sounds get used in something that’s broadcast? Depending on what type of licensing that’s been chosen by the user, Getty registers the track with performing rights organizations and administers the royalties – 100 percent of the ‘writer’s share’ goes to the creator, along with 50 percent of the ‘publishing share’.
I have a feeling Desi Music labels will now start to utilise this channel more, and the artists and promoters will no longer be able to upload their music to SoundCloud. We found with youtube, the labels were filing copyright notices to youtube, and any 3rd party was having the videos removed, and in some cases their youtube accounts closed.
This is a great opportunity for the Asian music artists and labels to push their music through another channel and hopefully monetise their products via a different channel. It remains to be seen which labels will take this form of online promotion and make the most of it. Time will tell as SoundCloud role out this service.