SoundCloud set to close deals with all three major labels
According to Bloomberg, SoundCloud has offered up stake in its company to weather the storm of possible litigation coming from the music industry’s three major labels; Universal Music Group, Sony Music Entertainment and Warner Music Group. In an attempt to avoid being sued by for copyright violations, sources close to the talks disclosed that SoundCloud may be giving 3-5% stake to each of the labels as well as a revenue share of all future profits.
But don’t pick up your torches and pitchforks just yet.
Although it may seem that dance music’s original bastion of creative freedom and artistic expression has now been completely jeopardized by corporations desperate to adapt to the new music consumption climate, there may still be hope for the platform after all. Appeasement of the big three will keep SoundCloud flourishing far into the future, and although unofficial remixes, bootlegs and mash-ups could become a thing of the past, we may see labels uploading their entire catalogs now that they have a stake in the company’s profits.
As of writing, SoundCloud has declined to comment.
Via: Bloomberg
Categories: Music