SoundCloud secures first major label deal with Warner Bros.

SoundCloud’s plans to become a fully-fledged Spotify rival got a huge boost on Tuesday after the music sharing platform secured its first licensing deal with a major label.

The streaming service now has the rights to offer music from within the Warner Bros. catalogue and, as a result, has agreed to cough up royalties every time a track from a Warner artist is played.

Interestingly, dues will also be paid when a Warner track features as part of the site’s trademark mash-ups or mixes, curated by users.

According to a report in the Wall Street Journal, the deal does not require Warner to make its entire catalogue available, while it also gives the label a vested interest in SoundCloud.

The German company was able to convince Warner to sign on the dotted line with a vow to launch a paid subscription service in the first half of 2015 to complement the existing ad-funded, free site. The deal could now open the floodgates and see other major labels jump into bed with SoundCloud.

A paid service will allow SoundCloud to create a revenue stream beyond its advertising income and subscriptions to the DJ-friendly SoundCloud Pro platform.

The deal comes following a newsworthy few months for the popular audio-sharing platform. Earlier this year Twitter was rumoured to be interested in acquiring the company, while last month SoundCloud made an accord with Twitter to embed audio clips within tweets.

Read more: iTunes Radio vs Spotify

Via: The Verge

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