Earlier today, Soundcloud landed a licensing deal with Warner Music Group in efforts to pay artists royalties. According to the New York Times, the deal reportedly guarantees that Warner artists will get paid when their music is played on SoundCloud, including DJ mixes and mash-ups. In addition, SoundCloud also announced that a paid subscription tier will be introduced in early 2015. WMG is set to pay for a three to five percent equity stake of SoundCloud. Unlike Spotify and Apple’s licensing deals with record labels, SoundCloud’s deal isn’t all-encompassing and doesn’t cover the label’s entire catalog. WMG artists will be able to choose which specific songs are made available to SoundCloud.
‘SoundCloud is a platform built on music innovation and it has a rare ability to drive music discovery while enhancing the connection and collaboration between an artist and their following,’ said WMG COO Robert Wiesenthal in a recent statement. ‘Our deal will foster that relationship, while providing a powerful range of income opportunities for WMG’s artists and songwriters.’
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