SoundCloud + Sony


You get the aux cord, what app do you open up? … If SoundCloud came to mind at all you should read this:

SoundCloud who offers over 100 million free tracks has signed a licensing deal with the worlds second largest record company, Sony, a.k.a. another paid subscription #AnotherOne. After Apple launched its music streaming service Apple Music June of 2015, and Jay Z’s Tidal in March of the same year SoundCloud seems to be entering the trend a little. This deal though comes after an awkward battle between the two companies. Back in May Sony pulled numerous songs produced by their artists which were being streamed on the site without charging any royalties and this got people upset. Like DJ Madeon who compared Sony’s actions to being held hostage. Sony had nothing to say about the event but SoundCloud answered by empathizing with musicians in saying “we’ve always put control in the hands of creators, and anyone who makes music and audio can decide when and how they want to share it with fans.”

Record companies are loving it. Although to us, the consumers who have to dish out $10+ every month to listen to our favorite songs, this deal might seem annoying, releasing content via a paid subscriptions on platforms that are supported by advertising, means higher royalty rates for them.

So what’s really to gain with this deal? A new subscription based service by SoundCloud is definitely in the works for the end of this year but it is still too early to know the fine details. The service will give subscribers access to exclusive Sony Music songs, and content from all of their artists world wide. According to a New York Times article SoundCloud’s free version is said to most likely a snippet of Sony’s music, along with unlicensed mashups, remixes, covers etc.

Are you ready to take the “next step” with SoundCloud and Sony?

SoundCloud also signed a licensing deal with Warner Music back in 2014.

– Yanilis Checo


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