SoundCloud To Pay Royalties To Warner Music Group



It is being reported that audio streaming service SoundCloud has penned a deal with Warner Music Group to pay royalties every time a WMG song is played.

From the Verge:

The streaming site has signed a licensing agreement with Warner and will pay the label royalties whenever one of its songs is played on SoundCloud. Warner will also earn money if a song from its catalog is cut up and spliced into mashups on the site...

The Verge is also reporting that Warner was hesitant to work with SoundCloud unless they guaranteed some sort of premium subscription service to the customers. Last month, SoundCloud began serving ads to all of it's customers that are taking advantage of the free service.

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The SoundCloud premium model is expected to be available sometime in early 2015. They currently offer a Pro accout for DJs and musicians who want to gain more exposure via the service.

The deal is said to not include all of Warner's catalog and details of which artists are included have not been disclosed.

Over the past few months, SoundCloud has become under fire by users as they have been deleting music and entire accounts for copyright claims. It has been said that these actions were completed by order of the major music labels and their instructions. EDM DJ Kaskade saw most of his SoundCloud page deleted and most recently This Song Is Sick saw their entire page removed.

It has also been reported that SoundCloud has given Universal Music Group partial ownership of the company in order to avoid a major copyright lawsuit from the label.

Reportedly, Warner Music Group has received some sort of ownership as well as part of the deal.

Via: The Verge

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