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Business News Deals Digital
SoundCloud partners with Zefr for content ID and monetisation
By Andy Malt | Published on Monday 13 April 2015
SoundCloud has partnered with rights management software provider Zefr to automatically scan uploads to the audio-sharing site for copyright infringing content. The plan is to allow content owners to block unapproved uploads of their music, or to monetise it via SoundCloud’s all-new ad platform.
“That sounds a bit like YouTube’s Content ID”, you’re probably thinking. Well, actually, it sounds exactly like it, because Zefr’s biggest client is YouTube, to power its Content ID system.
“SoundCloud is continuing its evolution as a mature platform for labels and advertisers”, said SoundCloud CEO, Alexander Ljung. “Working with Zefr, SoundCloud is taking another step to becoming the powerhouse player in the digital audio business”.
TechCrunch reports that SoundCloud is the first new partner for Zefr since it raised $30 million in investment last year. For SoundCloud, it’s the next step in convincing record labels that it can transition into a revenue-generating service from its previous incarnation as a no-royalties-for-anyone promotional tool. To date, Warner is the only major label it has managed to sign up to its new business model.
Nevertheless, last month, SoundCloud claimed that it had paid out $1 million to the various content owners (music-based and otherwise) who had signed up to its On SoundCloud partner programme in the first six months since launching the monetisation tools.