SoundCloud and Universal Music finally agree to licensing deal
After a seemingly endless string of lawsuits, technical mishaps, and all-around public frustration, SoundCloud is finally catching its break. The Berlin-based company has reached an official licensing agreement with Universal Music, which will allow them official access to the major label’s catalog.
The deal arrives over one year after SoundCloud inked a similar agreement with Warner Music over their catalog. Supposedly, the new agreement will open the door for a new paid subscription model, though the company has yet to release any details surrounding the plan. Having also settled their dispute with PRS For Music, who sued the platform for unpaid royalties last August, SoundCloud has finally paved a solid, legal foundation on which to (hopefully) build a profitable business model.
“We’ve got the majority of the music industry partnered with us now,” Alexander Ljung, CEO of SoundCloud, said.
The final piece missing from the puzzle is Sony, the world’s second largest recorded music company. Relations between the two companies have historically been a bit shaky. Last May, for instance, Sony removed their artists’ catalogues from the site after royalty disputes with SoundCloud. The two companies remain in negotiations, but have yet to reach any official deal.
Via: The New York Times