Mixcloud Says Ad-Supported Streaming Isn’t Paying the Bills, Introduces Paid Tiers

  • Save

  • Save
Photo Courtesy Mixcloud

Mixcloud is changing the way users experience the service by introducing new premium tiers.

These days, most labels and artists earn a majority of their recording revenues through streaming, which of course introduces some serious compensation problems.  But platforms are also bleeding, especially on the free side.

Accordingly, Mixcloud says the revenue from advertising no longer covers the cost of paying rights holders their fair share.  It’s time for a serious paid tier, according to a blog post from the company.

Since we started building this platform, the royalty costs we pay for every person who listens for free have steadily risen. Today, the revenue that we make from advertising simply doesn’t come close to covering these costs.

Mixcloud still offers a free tier, but starting immediately, the platform is limiting free listening.

Mixcloud says that in the coming months, free playback streaming will become “slightly more limited.” In the blog post outlining the differences, Mixcloud says the change is necessary to remain ‘fair’.  Mixcloud wants to continue putting artists and creators at its core with a sustainable platform.

Mixcloud says the new premium tier and limitations are necessary to create a sustainable platform, which includes sustaining its mission to create a safe and legal space for DJs and radio stations to offer their content.

Here’s what’s changing.

Mixcloud Free Playback Limitations

  • Listeners can only seek forward (not backward) while listening to a show.
  • Users only listen to the same show a maximum of three times in a rolling two-week window.
  • Free listeners cannot listen to shows that feature more than four tracks by the same artist, or three tracks from an album.

The streaming company has also redesigned its subscription plans to “lift these limitations, whatever type of listener you may be.”

Subscription Plans

  • Mixcloud Select – Allows a listener to subscribe to an individual creator on Mixcloud starting at $2.99 a month. Creators can set the price higher or lower. Supporters can listen to that channel without limits and receive any perks listed for subscribers.
  • Mixcloud Premium – This new subscription tier costs $7.99/month and allows a listener to access all public shows on the platform with no limits.

Mixcloud also detailed how the money is dispersed from Premium accounts.

  • Save