After reaching licensing deals with major record labels in Warner Music Group and Universal Music Group earlier this year, Soundcloud has agreed to terms with Sony Music Entertainment in a landmark deal.
According to Music Business Worldwide, the new deal gives Sony stock in Soundcloud and allows the record company to participate in the streaming platform's next round of funding.
Now that Soundcloud has all three major record labels on board, the Berlin based company increases it's reach over the music streaming market. A critical move for the company to launch it's paid subscription service later this year.
The agreement does come as a surprise with Sony and Soundcloud seemingly far off from reaching a deal last year. The label pulled a selection of it's biggest artists from the platform in May 2015. Madeon was one of these artists and went so far as to say the label was “holding [its] own artists hostage”.
Last month Soundcloud released financial numbers from 2014, which showed $56.5 million in losses. With that in mind, the streaming platform is making strides toward monetization and this new deal with Sony is a big step in the right direction.