advertisement
Facebook
X
LinkedIn
WhatsApp
Reddit

SoundCloud will pay Warner every time its songs are used

Music streaming service SoundCloud has almost become the de facto destination for many aspiring DJs and music creators who want to get their musical masterpieces into the ears of millions who care to listen. But the service also houses a great number of legitimate songs from well-known artists.

For that, SoundCloud recently signed an agreement with music label Warner, where it agreed to pay the company royalties every time one of Warner’s songs are listened to, or used in a mashup of different tunes.

If you’re wondering where the money will be coming from if SoundCloud is available to millions for free, it has been rumoured that Warner didn’t want to sign the deal with the music hosting service until it implemented a paid-for subscription service. (But you shouldn’t worry too much, as the ad-sponsored free version will still be made available.)

Selling subscriptions alone won’t be able to cover the royalty costs, and that’s where it will look towards its already-established business model. SoundCloud “currently makes money from musicians and DJs who sign up for its ‘Pro’ subscription tiers and post tracks to the site in hopes of gaining exposure,” The Verge explained.

The music label is also the first to sign such an agreement with SoundCloud.

“We’re thrilled that Warner Music Group will be the first major label to join our new creator partner program. We expect to generate significant revenue for Warner and its artists in the months and years ahead as we roll out an ad-supported offering and subscription service that delivers real value to the industry,”said Alexander Ljung, SoundCloud’s founder and CEO, in a statement.

It’s rather ironic that SoundCloud would agree to such a deal, as last year it lost $29 million, while only making $14 million in revenue.

[Source – Warner Music Group]

advertisement

About Author

advertisement

Related News

advertisement