Soundcloud has officially signed a licensing deal with Warner Music Group. This means that Warner artists will get paid whenever their music is played on the site. Soundcloud had announced earlier this year that they were looking to pay artists royalties. Signing a deal with Warner is a big step in that direction. Soundcloud also announced that they will offer a paid subscription service starting in 2015.
It was also announced that Warner's deal with Soundcloud will be unlike their deals with Apple and Spotify, in that it doesn't cover the label's entire catalog. Artists under the Warner umbrella will be able to pick and choose which material will be available for users to stream. Warner Music COO Robert Wiesenthal says, “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.” He would also go on to say, "Our deal will foster that relationship, while providing a powerful range of income opportunities for WMG’s artists and songwriters.” Should be interesting to see how Soundcloud evolves over the next year or so.
