Soundcloud has inked a multi year licensing deal with Universal Music. This deal has been in the works for some time and now it's official!
The deal will allow SoundCloud to monetize Universal tracks with advertising, and include user-generated uploads that are based on Universal’s music.
In a statement by Universal Music Group chairman and CEO Lucian Grainge:
“At UMG, we have long-embraced empowering entrepreneurs and innovative services such as SoundCloud. We look forward to working with SoundCloud and supporting the company’s evolution into a successful commercial service.”
So you ask, what about the indie artist?
Soundcloud will continue to allow independent creators to upload their own songs and DJ mixes. The thing is now Universal will be getting its share of advertising and subscription revenue generated with a DJ mix that includes their artist’s music, even if it has been uploaded by an unknown bedroom DJ without prior consent of the major label. The result isn’t just potentially more revenue for rights holders, but also a vastly bigger catalog than most other subscription services.