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PRS For Music Reaches Agreement with Soundcloud Over Artist Royalties

After 5 years of negotiations, PRS For Music and Soundcloud have finally reached an agreement.

Earlier this year PRS For Music took steps to settle the score with Soundcloud over artist royalties. The organization that represents artists with 4,500 works on the streaming platform saw no other solution to the issues other than to begin legal action against Soundcloud. The two parties have now reached a settlement, but there is still work to be done.

Soundcloud is looking to make some changes to their platform in the coming year. The streaming site was previously free up until this point and was not able to pay the artists that are featured. In the United States, advertisements are already implemented and there are different tiers of subscription. Soundcloud stated that they will "introduce subscription and advertising across Europe in 2016" so that in return, "creators can start to make money from their tracks."

PRS For Music CEO Robert Ashcroft had this to say about the agreement: "The safe harbours in current legislation still present ambiguity, and obstruct the efficient licensing of online services," he states. "But our agreement with SoundCloud is a step in the right direction towards a more level playing field for the online marketplace." 

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Alexander Ljung, the CEO of Soundcloud, explained the goals for the future of the streaming platform: "We're working hard to create a platform where all creators can be paid for their work, and already have deals in place with thousands of copyright owners. PRS for Music is also fully committed to creators, and we’re pleased to have reached an agreement that will expand revenue opportunities, improve the accuracy of royalty distributions, and launch new services for our 175 million monthly active listeners on SoundCloud in 2016."

[via RA]

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