SoundCloud has signed a licensing deal with Sony Music.
The last of the three major labels to reach and agreement with the streaming service over royalties, Music Business Worldwide reports “watertight sources” have confirmed the deal will see Sony Music receive shares in SoundCloud as well as an invitation to take part in the company’s next funding round.
The deal should reduce the number of takedowns and profile deletions, and mean the service is able to stream music from Sony Music artists. The label removed recordings from many of its artists last year, citing “a lack of monetisation opportunities on the platform”.
Now all the majors are involved, we could see that situation change. Despite being a stable of the online music scene, SoundCloud suffered losses of $44 million in 2014. A drive towards a paid subscription service could now follow.
The last of the three major labels to reach and agreement with the streaming service over royalties, Music Business Worldwide reports “watertight sources” have confirmed the deal will see Sony Music receive shares in SoundCloud as well as an invitation to take part in the company’s next funding round.
The deal should reduce the number of takedowns and profile deletions, and mean the service is able to stream music from Sony Music artists. The label removed recordings from many of its artists last year, citing “a lack of monetisation opportunities on the platform”.
Now all the majors are involved, we could see that situation change. Despite being a stable of the online music scene, SoundCloud suffered losses of $44 million in 2014. A drive towards a paid subscription service could now follow.
