It looks as if the Soundcloud, a hit service in streaming the music is now looking to monetize its service through the use of advertisement. However, something may stand in their way. The music service has reached over 350 million users on monthly basis and this number is expected to continue to grow within the coming months since the service is also being improved. Now, the company is looking on how they may cash in on this success which they have already achieved with this community. The advertisement is the path they are thinking to follow as it has been reported by Dancing Astronaut.
As Soundcloud is now one of the largest platforms for streaming the video, it is in good position in making millions but not the billions from the service they offer on monthly basis. The company’s business is now based on the artist-to-fan interactions through social media which brings two together in a fluent way. This fact had earned the company a loyal and respectable fan base in the entire world.
The problem is that it seems that there is a problem that it is standing in the way when it is about monetizing by the use of the advertisements. The National Music Publishers Association or NMPA is now blocking all audio streaming service against being able to monetize the content found in the application in a successful way. The NMPA is still looking if it is good to sue an audio streaming service after a dispute. However, they may be looking to resolve this issue to offer a win-win situation to the people who are involved. Being not able to post ads, is making the company to be in financial difficulties and this means that they are not able to make the profits and they may go under in case the trend can continue.
But now, it seems that there is a way that can be used to go around the regulation of NMPA since Jeff Toig who is a general manager for Muve music together with the ex digital executive of Warner Music Group, were called to help out with this situation. Soundtrack is expected to play along in order to expand its market in a strategic way by the help of these two experienced people. This will only be possible if NMPA and record labels do not make it hard further. Soundtrack had an opportunity in becoming a financial giant in the music –streaming industry.
Youtube has taken the same way in 2007 and it ended up in a fierce legal battle against NMPA. David Israelite, the Chief Executive and president of NMPA said that they are in the talks with executives of Soundcloud, however, he said that they are thinking about to sue them in case nothing comes out of the talks. However, the officials of Soundcloud are saying that there is a light in distance and while making sure that they are preserving the user base, avoiding the legal action while at the same time getting some revenues to help them out in their businesses.