Having managed to avoid a lengthy court case with collection society PRS late last year, Soundcloud today announced it has signed a “landmark” licensing deal with Universal Music Group.
In order for Soundcloud to turn a profit – which it has yet to do – the music streaming service needs to sign licensing deals with all the major labels in order to begin to monetising the service properly.
What it actually means for us, the users, is a continued push towards monetising the service, which might not sound all that enticing for listeners, but – it is a massive deal to artists, who have amassed huge followings on the service with little or no renumeration for their efforts.
Alexander Ljung, SoundCloud Founder & CEO said: “With this partnership with UMG we will further strengthen and grow the unique community we’ve built over the past seven years, where multiple forms of expression can live and where artists at every stage of their careers come to create and share their work.
“Bringing together the world’s largest audio platform and the world’s largest music company means we are able to further expand SoundCloud’s role as a critical platform for creators and open up its benefits to UMG’s extensive roster of artists.
“With the majority of the music industry partnering with us, and adding to the more than 100 million tracks already available to discover on the platform, we are able to offer a service to both creators and listeners that is unrivalled in the music streaming space today.”
Whilst, Universal Music Group’s chairman, Lucian Grainge said: “With this partnership, we’re ensuring recording artists, songwriters and labels benefit, both creatively and commercially, from the exciting new forms of music community engagement on SoundCloud. We look forward to working with SoundCloud and supporting the company’s evolution into a successful commercial service.”
Soundcloud will no doubt be turning its attention to Sony Music Entertainment and Sony/ATV Music Publishing, who are the final remaining major label to sign on the dotted line.