Users Up In Arms As Soundcloud Begins To Remove Content

If you're been using Soundcloud to distribute your songs you know that it's a wonderful service that's almost too inexpensive to be true. The problem is that the company hasn't been able to be profitable and now they're under some pressure from investors to turn that around.

In an effort to stem the tide and perhaps even turn a profit, Soundcloud recently entered into licensing deals with Warner Music Group and Merlin (the organization that represents a large number of indie labels), but part of that deal meant that the platform had to begin to enforce copyright rules.

As a result, last week Soundcloud began an offensive on variety of copyright violations including unlicensed tracks, tracks that include unlicensed samples, remixes with unlicensed tracks and even bootleg remixes that that bear a recognizable resemblance to an original. Not only that, the platform has even deleted accounts of users that it deems to be major offenders.

This has caused a group of Soundcloud users, mostly DJs, to go ballistic since they're the ones that are mostly being targeted. That said, any musician with an unauthorized cover song or sample could also feek the company's wrath.

To be clear, Soundcloud has long been a welcome home for copyright violations, but it's only now that it's had the will to actually clamp down. That said, money (or lack of it) has a way of making you do things that you don't necessarily want to, something that musicians, artists and bands are faced with every day.

A sample takedown notice

UPDATE: Sources are saying that Soundcloud has also reached a licensing agreement with Universal Music Group, which might further explain the takedown spree last week.

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Warners Makes A Deal With The Indies, Or Does It?

The record label business as we know it has changed immensely in the last year or so and those changes continue to come hard and fast. Take for instance the fact that when Universal Music Group purchased the assets of EMI last year, they were forced by European regulators to sell off much of the catalog and several labels (including Parlophone, Chrysalis, and Virgin Classical among others) to Warner Music Group in order to make the deal.

Now it looks like WMG is getting the same treatment, as Merlin and IMPALA, two of the most powerful indie label trade groups, have been threatening to raise a fuss again with the EU regulators as they had with Universal/EMI and BMG/Sony before that. So Warners became proactive in the matter and announced an agreement with the two groups to sell or license "a significant portion" of that music to some of the indie companies (which were not specified) within those groups.

Now let's get this straight. WMG tells the trade groups it will help their clients make money, but lays out no specifics on how that will happen or with what companies. Doesn't this sound like a bait and switch where WMG makes a nebulous promise that it can easily forget about as soon as the regulators give their OK? Or, WMG can just give some token feel-good deals that doesn't substantially alter the status quo of either company.

This seems to be a classic deal to make everyone look and feel good, but without much substance. If I were one of the member companies of Merlin or IMPALA, I'd be upset. It looks like more of the same from the majors, but with the seal of approval from the organization that should be helping the indie label's cause. It should be interesting to see how this plays out.

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