SoundCloud eyes on ad-free subscriptions and paying labels? Leaked contract revealed it does

Although the specific copy of SoundCloud leaked contract is unsigned, it discloses the desperate moves the Swedish online audio service is performing to save their business and reputation.

Last month, a deal was made between SoundCloud and the National Music Publisher's Association (NMPA) and their partners, which signifies that the contract's legitimacy in the negotiations is going to happen very soon.

Just recently, the Digital Music News released a SoundCloud leaked contract. It stipulates the move of the service for legal licensing with independent music publishers. Although the copy is unsigned, it makes known that it is desperately trying becoming legal and pay royalties before big labels pull their music from the streaming service.

As read in the contract, SoundCloud will be obliged to pay the NMPA either 10.5% of their overall revenue including advertisements or 22% of their proceeds on sound recording rights- whichever percentage higher is the one the service has to pay. SoundCloud music publishing agreement, brokered through the NMPA, is taking place alongside negotiations with major labels Warner Music Group, Sony Music Entertainment, and Universal Music Group.

Additionally, the SoundCloud leaked contract intends to add two new "paid" tiers within service. The Additional Services tier "would let users pay for an audio and visual ad-free experience and download a limited amount of music, presumably similar to syncing options from services like Spotify."

But when asked for a response about the SoundCloud leaked contract and publishers negotation, the service is yet to give their feedback.

According to reports, SoundCloud has over 175 million unique users, 40 million of them registered, with over 12 hours of audio content uploaded every minute, which might explain why major labels and publishers are very serious in pressuring SoundCloud to go legal. Otherwise, the service may be shut down.

Unfortunately, the SoundCloud leaked contract and the possibility of becoming fully legal could potentially damage its relationships with listeners.