Wednesday, November 5, 2014

Soundcloud And Warner Music Make A Deal

Soundcloud icon image
Soundcloud has been trying to become more than just a way for artists, bands, and DJs to showcase their music, and the service took a big step forward yesterday with a new licensing deal with one of the major labels in Warner Music.

The deal means that Warners and Warners artists (hopefully) will get paid anytime someone plays one of their songs on the platform. This includes any of the very popular DJ mashups that the service is becoming noted for.

Warners will also take a cut of the ad revenue generated, as well as a cut of the revenue from Soundcloud's yet-to-be-introduced subscription service.

On top of that, the Wall Street Journal reports that Warners will also get a 3 to 5% stake in Soundcloud as part of the deal.

What the Warners deal does is legitimize Soundcloud in the eyes of other labels and in the investment community, allowing the service to raise additional capital and make the next major label deals a bit easier. For artists, it means that they'll finally get paid if someone plays their music on the platform (providing they're signed to Warners, at least at the moment).

On a related side note, I always suggest that people use Soundcloud if they want me to listen to their tracks. It's so much more convenient that sending a file.

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