The site has, until now, been completely free
Alexandra Pollard

14:51 21st August 2014

SoundCloud is set to introduce advertisements and a paid subscription service as part of a new licensing deal with entertainment companies.

The site, which began in 2007, allows users to upload, stream and share music online for free, and with no adverts.

According to The New York Times, from today (21 August), the site will begin incorporating advertising into its service, to allow artists and labels to collect royalties. It eventually plans to introduce a paid subscription service to let listeners skip ads, in a similar move to the one Spotify made a few years ago.

Listen to Muse's 'New Born' on SoundCloud advert-free while you still can

According to sources, the negotiations are being made with labels in return for them not suing SoundCloud over past copyight infringements. A clean, advert-filled slate, if you will.

SoundCloud's chief executive, Alex Ljung, said: "People know that SoundCloud is very much a creator platform. They understand that if they hear an ad, then a creator is getting paid for it as well."

According to the company, 350 million people use its service every month, but its revenues have been miniscule, as it only charges its most active providers.