Earlier this year Soundcloud announced they were making moves to pay artist royalties and today they’ve taken the next step, signing a licensing deal with Warner Music Group. Reportedly this deal guarantees that Warner artists will get paid when their music is streamed, whether their music is played on its own, in a DJ mix or mash-ups.
WMG will reportedly pay for a three to five percent equity stake of SoundCloud. According to a New York Times source, Soundcloud’s previous copyright infringements will be forgiven. The story also notes that unlike Spotify and Apple’s licensing deals with the major labels, SoundCloud’s deal isn’t all-encompassing and doesn’t cover the label’s entire catalog. Instead, 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 statement. “Our deal will foster that relationship, while providing a powerful range of income opportunities for WMG’s artists and songwriters.”