Warner Music Group Signs a Deal with SoundCloud

Lindsay Hood

By Lindsay Hood

on 11.04.14 in News

They signed on the dotted line. Tech Crunch reported that Warner Music Group is the first major label to sign a licensing deal with SoundCloud. They will support the streaming platform’s program “On SoundCloud,” which is described on the site as a “leading global platform that helps artists and creators share their music and audio with the world… [o]ur offerings support your creativity and careers with tools, exposure, rewards and millions of listeners.” Essentially, it sounds as though SoundCloud will pair the label’s artists with brands to create ad-supported content and revenue.

Tech Crunch also claimed that SoundCloud was currently in the process of starting tentative negotiations with Sony and Universal again after previous talks had stalled.

In a statement to the press, SoundCloud CEO Alexander Ljung said:

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.

Additionally, Jonathan Dworkin, the Executive Vice President of Digital Strategy & Business Development at Warner Music Group, stated:

SoundCloud is a distinctly artist-driven service, with a highly engaged global fan community at its heart. This deal will enable SoundCloud to further develop its product as well as its massive user base, and will deliver multi-tiered monetization while preserving the elements that have made the service so popular. It’s a win for artists, for rights-holders and for consumers.

The terms of the negotiation between the two companies was not disclosed, although earlier in the summer Bloomberg News reported that SoundCloud was offering the labels between a 3-5% stake with the potential of a percentage in future revenue.