Sony Music may have reached a landmark agreement with Soundcloud
Sony Music appear to be on the verge of sealing a landmark deal with SoundCloud, the Berlin-based music sharing platform that has spent the past two years fighting to win the majors over to its services. It is reported by Music Business Worldwide that both parties have now agreed on contractual terms, with Sony also thought to join the company’s next round of funding. This marks a three-of-three victory for SoundCloud and its attempts to get major labels onboard with its model, meaning its ability to pursue life as a subscription service has never been greater.
The agreement follows a historic boycott of the platform from Sony’s major artists and projects, with SoundCloud responding to the recent reportage of losses as a reflection of a company “In a strong growing stage.” Like those deals struck by Warner and Universal, Sony’s will likely rest on SoundCloud’s ability to bring a substantial and realistic paid subscription model to the table. It’s a victory for SoundCloud, but one muted slightly by Apple’s recent victory in bringing the capacity to host previously unlicensed remixes and mixes with legitimate means of royalty collection.