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SoundCloud nearing licensing deal with record labels

Written by Andre Yoskowitz (Google+) @ 12 Jul 2014 22:41 User comments (3)

SoundCloud nearing licensing deal with record labels A major deal is in the works between music service SoundCloud and the record labels.
The deal, which could close this month, will give the major record labels stakes in the service in return for not suing over copyright violations.

Each label (Universal, Warner and Sony) will receive between a 3-5 percent stake, as well as a percentage of future revenue in the startup. The deal will value the company at about $600 million, cheap compared to other services in the streaming music industry, and also cheaper than an investment round valued the company in February. The difference is likely due to the labels also exchanging licensing rights to millions of songs, thus getting them a discount on the investment.

SoundCloud has over 250 million monthly listeners. The site lets users upload music, podcasts and other audio and then quickly post that content to other sites including social media. In this way, the service is very different than other catalogs like Spotify or Rdio because most of the content is user-uploaded and not copyright music, although many mixes do include copyright tracks.

As far as a business model goes, SoundCloud has not really created one. The company charges users that upload over two hours of audio on a monthly basis and is looking into advertising. A subscription model is out of the question unless the labels provide more access to songs.

Source:
BBG

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3 user comments

112.7.2014 23:48

Quote:
...the service is very different than other catalogs like Spotify or Rdio because most of the content is user-uploaded and not copyright music.
Your saying that most of the content is user created!?!

So the major lables get to have their cake and eat it too?

Its a lot easier being righteous than right.


DSE VZ300-
Zilog Z80 CPU, 32KB RAM (16K+16K cartridge), video processor 6847, 2KB video RAM, 16 colours (text mode), 5.25" FDD

213.7.2014 12:07

Originally posted by Jemborg:
Quote:
...the service is very different than other catalogs like Spotify or Rdio because most of the content is user-uploaded and not copyright music.
Your saying that most of the content is user created!?!

So the major lables get to have their cake and eat it too?
Interesting catch, and i wonder if one reads the "fine print" on the site i wonder if there is an agreement that anything uploaded the record companies from then on have an implied percentage of any money/royalties for such material...



314.7.2014 4:57

Originally posted by SomeBozo:
Originally posted by Jemborg:
Quote:
...the service is very different than other catalogs like Spotify or Rdio because most of the content is user-uploaded and not copyright music.
Your saying that most of the content is user created!?!

So the major lables get to have their cake and eat it too?
Interesting catch, and i wonder if one reads the "fine print" on the site i wonder if there is an agreement that anything uploaded the record companies from then on have an implied percentage of any money/royalties for such material...




There is a great doco Terms-And-Conditions-May-Apply

http://www.sbs.com.au/ondemand/video/28...tions-May-Apply

You've got less than < 3 days left to watch it.

I starting to think this aspect of the internet should be heavily regulated.

Facebook has something like a book's worth. One place even put in their T&S that you were 'signing over your soul in perpetuity'. Got over 700 souls before they took it down.






Its a lot easier being righteous than right.


DSE VZ300-
Zilog Z80 CPU, 32KB RAM (16K+16K cartridge), video processor 6847, 2KB video RAM, 16 colours (text mode), 5.25" FDD

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