SoundCloud to possibly secure licensing deal with Universal
SoundCloud continues to be a much-discussed topic in the music world, as new stories about its efforts to profit have surfaced nearly every week for the past several months. Among the most recent slew of news is ongoing speculation regarding an official deal with Universal Music Group that would give the major label a significant stake in SoundCloud.
Ultimately, UMG’s choice to invest in SoundCloud is a safe one. By keeping the service afloat, the company is assured a profit. If allowed to fail, however, hundreds of SoundCloud duplicate sites would inevitably fill the space left behind by its demise and make it far more difficult for UMG to track down and collect digital royalties.
Today’s supposed deal is a monumental win for SoundCloud. While Warner Music Group already secured their stake in the company last November — along with royalty deals with 20,000 indie labels — it was simply not enough to ensure its survival. With two of music’s biggest corporations backing the platform, however, things could be looking up for both its staff and its listeners who depend on the website for music streaming.
Via: Complex Magazine