Soundcloud and Warner Music Group Licensing Agreement

Sarang Ahuja’s latest post:

Sarang Ahuja Soundcloud

According to Ingrid Lunden in her article “SoundCloud Confirms Licensing Deal with Warner Music Group” on Tech Crunch, the music social media site has struck its first licensing deal with a major record label.  While this is definitely a big leap forward for SoundCloud, which lost more money than it brought in in 2013, the agreement could also be very beneficial for Warner Music Group, since they are partnering with a company that is used by 175 million unique users every month, making it a huge platform and user base to which all of their artists past, present, and future can be exposed.

Apparently, SoundCloud is still in negotiations with Universal and Sony for licensing agreements.  If terms are agreed upon with those companies in addition to the one they just signed, SoundCloud could become a big hub for every level of music, from the big popular hits released by these major labels, to the user generated amateur content that SoundCloud is currently very well known for supporting.  It is really interesting to see these major music labels developing relationships with online music platforms, as has been happening over the past several years, especially considering that roughly 20 years ago or less the whole music industry was up in arms about their music being easily shared on the internet on sources such as Napster.  Now it seems that they are more willing and more prepared to meet the huge base of users that look for music online.

One thing the author brings up in this article is a comparison between where SoundCloud is now, and where Youtube was a few years ago.  Before Youtube was a platform for major music, television, and even in some cases film, it was a much less polished, and had a higher percentage of user generated content.  SoundCloud seems to be willing to branch out in a similar manner, though they keep reiterating that they seek to continue providing a good platform for user generated material.

from Sarang Ahuja


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