Soundcloud and Sony Confirm Licensing Deal
Soundcloud and Sony have confirmed their licensing deal. Now Soundcloud has the rights to stream the major record labels’ artists on its music streaming website. There have been steady reports about this deal for months and it’s now signed and sealed.
The new Soundcloud and Sony deal allows for all artists on Sony, including its affiliated and distributed labels, to have their music available on Soundcloud.
This is a coup for Soundcloud as the company has also recently been struggling with cash flow problems. The hope is that signing a deal this huge could lift the company out of negative growth phase and put it in the running to be one of the most profitable and legitimate streaming platforms. They could also now make solid moves towards their proposed subscription service.
Denis Kooker, Sony Music Entertainment thepresident of Global and US sales said the following regarding the Soundcloud and Sony deal…
“We are pleased to be making content from Sony Music Entertainment available to Soundcloud’s large user base of highly-engaged, passionate music fans.
This agreement creates a business framework for the use of Sony Music songs on the Soundcloud platform that meets the needs of our artists and labels, and supports the growth of Soundcloud through its new premium on-demand music tier. Today is of particular significance to us as a company, as the addition of SME means we now have deals in place with all of the major music labels,” said Alexander Ljung, Soundcloud Founder & CEO. “With SME now on board, we continue on our journey building a unique platform, empowering our community of more than 18 million artists at every stage of their careers to share their work and connect with their fans, and enabling listeners to discover and be inspired by new music and audio. We are very excited to be working with SME and cannot wait to see what we can achieve together as we continue to transform the future of music online.”