SoundCloud is teaming up with Youtube partner Zefr on a deal that hasn’t been specified yet. It is expected that SoundCloud’s new deal will allow for record labels to generate money on songs whether they have been uploaded illegally or not.
What Zefr does is basically monitor visitor behavior and tell companies what should be uploaded to better appeal to the base. In this case it would be observing what listeners pay attention to. The process is similar to how it worked in tandem with YouTube to determine what content should be promoted based on viewer behavior. The behavior monitoring will also allow for SoundCloud to decide how to mix in advertising opportunities.
Since data is being observed, this would give record companies something tangible to request a take down of material as opposed to hunting down infringing content. SoundCloud has a similar issue with copyright infringement as YouTube and like the mega video streaming site, it has its own methods of dealing with copyrighted content. Zefr has allowed for YouTube to have a better handle on what content to include advertising so that copyright holders can get something from illegally uploaded material.