SoundCloud Signs Licensing Deal With Warner Music
It was reported earlier this year that SoundCloud was working on closing prominent deals with major record labels, and it seems that that work has come to fruition. According to a report from the New York Times, SoundCloud has landed a licensing deal with Warner Music Group. Per the report, the deal guarantees that Warner artists will get paid when their music is played on SoundCloud, even in DJ mixes and mash-ups. The deal covers artists signed to Warner's record labels, like Atlantic and Warner Bros., along with songwriters represented by its music publishing arm, Warner/Chappell. Artists such as Wiz Khalifa, Wale, Trey Songz, and Ty Dolla $ign are all covered under the deal.
In addition, SoundCloud will add a paid subscription tier in the first half of 2015, but details were vague in the report.
Warner will also pay an equity stake of three to five percent of SoundCloud. According to the report, past copyright infringements against SoundCloud will be indemnified. In addition, the source notes that SoundCloud's deal is not all-encompassing, and does not cover Warner's entire catalog. Warner Music Group's artists will be able to choose which songs will be made available to SoundCloud.
Previously: Get Ready To Hear Ads While Listening To Music On SoundCloud
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Twitter Wants To Buy SoundCloud
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