In another unfortunate set of events for Soundcloud, it appears similar developments are taking place to their platform as the recently defunct site Grooveshark, which was sued by labels and had its domain seized. This was the one of the first major platforms for streaming music online and making playlists, and they always believed copyright infringement would never get the best of them.
They operated under a similar set of guidelines to Soundcloud, working in a legal blind spot where artists weren't receiving royalties for being streamed. The big labels and music associations took Grooveshark down, and now Soundcloud could be getting a similar treatment.
According to multiple execs close to the situation, Sony Music Entertainment, Universal Music Group, and the Recording Associated Of America (RIAA) will soon be filing lawsuits against Soundcloud for "massive copyright infringement." We've all heard the stories of artists getting their music removed off Soundcloud, but this is going one step further.
This was right on the heels of Soundcloud introducing new tiers of subscriptions and allowing artists to receive tips through their platform. According to one source, “They don’t like Soundcloud’s attitude, they don’t like the pace of the talks,” with particular reference to Soundcloud’s CEO, Alexander Ljung.
Ljung has been trying to balance their income partially through ads and subscriptions, but the labels aren't happy about their standpoint and approach. The other issue stems from artists getting their content blocked by these same labels like Sony, in turn looking for other places to share content.
This situation has been highly problematic for Soundcloud. Although it's not their fault specifically content is being removed, it reflects poorly on their platform when artists and labels are coming against them similtaneously.
Soundcloud did recently sign a deal with over 20,000 indie labels, but the only major they have picked up so far is Warner. This is being written off as a "special case one-off" from Stephen Bryan, who recently worked for Warner as the Soundcloud SVP of Business Development and Strategy. That deal handed Warner only 5 percent, and that is apparently not good enough for most.
Article Source: Digital Music News
(H/T): Your EDM