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Warner Music Group strikes licensing deal with SoundCloud

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SoundCloud, the streaming site for music has signed a licensing agreement with Warner Music Group and will have to pay the label royalties whenever one of its songs is played on SoundCloud.

Warner is the first major music label to support its music on SoundCloud. Till now, SoundCloud  streamed tracks from musicians and DJs who sign up for its “Pro” subscription in order to make themselves known and rise to fame. Unfortunately, it has produced zero profit for the music industry as a whole. Now the Warner Music Group has added its support to the streaming site, it hopes to make some premium.

Warner Group was not sure of striking a deal until SoundCloud promised to deliver a premium subscription offering to consumers in the first half of 2015. The free, ad-supported service will still remain available, but what the streaming site will offer to its paid customers is unknown. Warner will also earn money if a song from its catalog is cut up and spliced into mashups on the site. As reported, Warner will not put up all of its catalogue on SoundCloud at once.

Senior Writer

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