Popular streaming service SoundCloud could soon be partnering with major record labels like Sony, Universal and Warner, according to a report on Bloomberg. The deal would approximate the website’s value at $500 to $600 million, and would grant each of the big three labels a stake of roughly three to five percent. Additionally, the labels would receive royalties based on play counts until they cross a certain threshold. The deal arose due to frequent copyright issues and would allow for the site to continue cultivating its swelling user base without fear of being slammed with a lawsuit. This isn’t the first time that major record labels have swooped in to limit the damage of streaming services: Universal Music owned a 14 percent share of Beats Electronics LLC before it was bought out by Apple, and still touts a five percent stake in Spotify and a 47 percent stake in Vevo. In other SoundCloud news, it was announced on Thursday that they’d become an official partner of Sonos. According to a blog post on Sonos’ site, SoundCloud users upload approximately 12 hours of audio every—single—minute. Damn.
SoundCloud Reportedly Close to Striking Deals with Major Labels
POSTED July 11, 2014 12:50PM IN MUSIC NEWS