The battle of the music services may just be heating up. Hot on the heels of the forthcoming launch of YouTube’s new music services, SoundCloud has announced that it has signed a licensing deal with Warner Music Group. This could give the start-up a much-needed boost onto the social music scene, according to VentureBeat.
Using an ad-supported platform for users to stream music across, the deal enables WMG to receive a small payment for each time one of its songs is used with the service. In addition, it will also play a part in SoundCloud’s upcoming subscription channels, per a report from the New York Times. The deal covers a number of artists, including Bruno Mars, Kylie Minogue and the legendary rock band Led Zeppelin, among thousands of others.
SoundCloud said on the deal, “The landmark partnership will create new commercial and promotional possibilities for WMG’s roster of established and emerging recording artists as well as songwriters signed to WMG’s music publishing arm, Warner/Chappell Music. Further, the deal includes innovative licensing terms that will provide WMG and its artists greater ability to manage the availability of content, while providing a path towards delivering additional revenue from user-generated mixes and mash-ups of WMG music.”
“SoundCloud is a platform built on music innovation and it has a rare ability to drive music discovery while enhancing the connection and collaboration between an artist and their following,” Robert Wiesenthal, the Warner Music Group’s chief operating officer, stated. “Our deal will foster that relationship, while providing a powerful range of income opportunities for WMG’s artists and songwriters.”
Such a deal could help push SoundCloud in the right direction. It’s certainly paid off for Warner, as it’s invested a three-to-five percent stake in the upstart company, although other financial dividends in the deal weren’t revealed just yet.
This marks yet another stake in the forthcoming streaming music war, between YouTube, the popular Spotify service, and Pandora, among others. However, with Warner’s official backing, things have gotten quite interesting, and 2015 could be even bigger with the signing of other companies to services.