Soundcloud has announced that they have signed a licensing deal with Sony, following what seemed like a roller-coaster of negotiating with the major music entity. It’s the final piece to a puzzle that also included deals with Warner, Universal and indie-based Merlin.
So, what’s next? Presumably, SoundCloud will now move forward with their subscription model, which is expected to arrive by year’s end. In addition, artists signed to distribution platforms like The Orchard, SME and RED will be able to make money for their songs through SoundCloud.
Sais Sony president of global digital business and (U.S.) sales Dennis Kooker:
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.
Hopefully, SoundCloud can return to gaining ground in the midst of competitors like Mixcloud (a viable SoundCloud alternative) and Apple Music, who recently scored their own deal for DJ mixes.