Berlin-based SoundCloud has officially announced that they are now finalising a deal with Universal although details of the agreement have not been revealed.
January 14, 2016
By Monica Tong
Universal Music Group, a unit part of the Vivendi SA conglomerate, has signed a deal today that will allow the audio-streaming company to go on playing music currently owned by the record label. The deal will allow Universal gain a small stake in SoundCloud, along with access to SoundcCloud’s user data.
Imminently, the industry have long anticipated this partnership as a way forward for SoundCloud; creating closer and healthier competition amongst other streaming giants such as Pandora and Spotify.
Universal has also announced that SoundCloud’s 175 million users will now have access to its song catalogue, which will also mean that SoundCloud’s users are heading towards monetization of their work, an alternative now offered on SoundCloud.
In recent years, due to its popularity, SoundCloud has been pressurized to sign licensing agreement with major record labels including Warner and Sony. Although SoundCloud has already signed a deal with Warner just over a year ago, Sony has yet to announce any deal with the audio-streaming service. SoundCloud is underway to developing a paid tier and will soon be going down the share-ad route. The audio-streaming service also entered a deal with Twitter Inc last year allowing the social network to play podcasts, audio as well as music directly from their feeds.
Over the last 2 years, SoundCloud has grown, from an amateur site for musicians to share their songs and content around the Internet to a full-fledged platform for professionals musicians to approach records labels to receiving gigs worldwide. It is indeed becoming the next Facebook or YouTube for the music industry; connecting buyers and sellers.
Universal finalises streaming deal with SoundCloud