Feb 28, 2017

SoundCloud adds a cheaper paid service focused on convenience

juannomore / Flickr CC

Music streaming service SoundCloud is adding a new — and — cheaper paid subscription option that is focused on convenience by removing ads and letting users listen to music offline. The company unveiled its first subscription service last year.

The lowdown: The new tier will cost $4.99 per month and will give users access to the 120 million songs part of SoundCloud's free content catalog without ads and available offline. This can be a great option for users who travel and don't want to use their smartphone data to stream, for example. It will be called SoundCloud Go.

The company's original subscription service will now be called SoundCloud Go+, which costs $9.99 and will continue to offer these features in addition to SoundCloud's premium content from music labels and certain artists for a total catalog of 150 million songs.

Why it matters: Though SoundCloud made its name as a way for independent artists and DJs to upload and distribute their music, the company has faced increasing competition from services like Spotify and Apple Music, which offer music from all the major labels. Subscription services also serve as an additional source of revenue for the company, which was rumored last year to be in talks to sell to Spotify, though the latter has reportedly decided against it.

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