Popular online music service/streaming site SoundCloud has reached a licensing deal with Universal Music Group, which will allow the record label giant collect revenue from the streaming site, according to the Los Angeles Times. On the heels of announcing the Universal Music deal, SoundCloud said it will begin to introduce subscription services in the U.S. and elsewhere later this year.
The deal will allow SoundCloud full access to Universal’s catalogue, which includes artists U2, Katy Perry, Kanye West, Sam Smith and The Weeknd. In return, Universal’s labels and publishing company will get access to SoundCloud’s “promotional tools, analysis and data to provide recording artists and songwriters with new opportunities to generate revenue and to strengthen their connections with fans,” according to a joint statement released by the two companies.
While further terms were not disclosed, the agreement comes a year after reaching a similar agreement with Warner Music Group. Other recent deals were made with digital rights agency Merlin, which represents independent labels, and the National Music Publishers Association.
The Berlin company, often defined as the, “YouTube of audio,” permits users to upload tracks, including remixes and mash-ups of existing material. Some artists like Kanye West have embraced the service to promote their forthcoming releases. On the flip side, it has come under fire by other music industry entities. The Los Angeles Times reported British music publishing group PRS for Music sued them over copyright infringement, though the case was settled.
SoundCloud, founded in 2008, claims 175 million monthly listeners. Advertising was added to its service in 2014.
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