SoundCloud signs royalty deals with 20,000 record labels
SoundCloud’s future seemed uncertain after numerous contracts regarding the platform’s monetization strategy and deals with the three major labels leaked. Yesterday, however, the music-streaming service announced that it had come to a formal agreement with 20,000 independent record labels through Merlin, a platform that represents small companies during digital negotiations. Beggars Group, Secretly Group and Warp are just a few of those labels included in the deal.
“Independent creators have always been at the core of SoundCloud, and with this partnership we’re thrilled to extend new revenue-generating opportunities to thousands of independent labels,” explained Alexander Ljung, one of the founders of SoundCloud.
Despite their recent string of success, Soundcloud continues to struggle in signing a deal with major labels like Sony and Universal. As of now, they remain unconvinced that SoundCloud can produce a heavy enough cash flow for them even with the introduction of its advertising platform — which helped SoundCloud pay around $2 million in royalties.
Via: NY Times