Sony inks deal with SoundCloud

Sony Music Entertainment has officially confirmed that it has licensed SoundCloud, ahead of the launch of a subscription service in the US and other markets later this year. MBW broke the news of the deal yesterday, and Sony is the last of the three major record labels to agree terms. Sony will take equity in the streaming platform. 

PRS for Music and Soundcloud - war is over

PRS for Music has written to its membership informing them that it has settled the recently launched legal action against the online music platform, which is widely used by PRS members. The licence covers the use of PRS for Music repertoire from SoundCloud’s launch, and extends to. cover SoundCloud in its plans to introduce subscription and advertising supported platforms across Europe in 2016.  Robert Ashcroft, Chief Executive of PRS for Music said: “On behalf of our members, I am pleased that we have been able to reach a settlement with SoundCloud without extended legal proceedings. This ends over five years of discussions on the licensing requirements for the platform, resulting in a licence under which our members are fairly rewarded for the use of their music." adding "The safe harbours in current legislation still present ambiguity, and obstruct the efficient licensing of online services, but our agreement with SoundCloud is a step in the right direction towards a more level playing field for the online marketplace." The letter from Karen Buse, Executive Director, Membership and International, reads:  I wrote to you earlier this year to explain our action against the online music streaming service SoundCloud. After five years of unsuccessful licensing negotiations, we believed that we had no alternative but to start legal proceedings against them. However, we have since, through intense discussion and negotiation, managed to reach an agreement. The agreement covers the use of repertoire controlled by PRS for Music since the service launched and is an important step in our quest to achieve a level playing field in the licensing of online services so that songwriters, composers and their music publishers can be paid properly for the use of their music online. We believe this agreement to be the best outcome because it sets us on the path towards receiving proper reporting from SoundCloud of their use of your repertoire, enables royalties to be paid and also avoids the cost of legal proceedings. Receiving enough accurate data on music uploaded to the platform remains a challenge but SoundCloud have committed to working with us to improve the quality of their reporting over time. We are conscious of the value that many of you derive from using SoundCloud and are pleased to have reached this landmark agreement. Whilst it is only one step along the road to a fully functioning online market, it is an important one. I would like to thank SoundCloud for breaking with the past and agreeing to work with us; a move which we feel is in not only your, but all rightsholders’, interests. We expect you have questions about what this means for you. To help answer these, we’ve put together some frequently asked questions which can be viewed here.

Yours sincerely, Karen Buse Executive Director, Membership and International PRS for Music

Warners on board with SoundCloud

SoundCloud, the user-created audio streaming platform currently used by 175 million unique listeners each month, confirmed today that it has inked its first licensing deal with one of the major record labels: the Warner Music Group — whose roster includes David Guetta, The Flaming Lips and Sheryl Crow — who will now partner with the streaming company around its ad-supported, creator partner program, “On SoundCloud” that was launched in August, as well as a paid subscription streaming service that will launch in the first half of 2015. Alexander Ljung, SoundCloud’s founder & CEO, said in a statement: “We’re thrilled that Warner Music Group will be the first major label to join our new creator partner program,” adding  “We expect to generate significant revenue for Warner and its artists in the months and years ahead as we roll out an ad-supported offering and subscription service that delivers real value to the industry.”

New deals in the digital age

Marty Bandier, head of Sony/ATV/EMI, has formally re-affirmed the publisher's threat to withdraw from the collective licensing system in the US if the Department Of Justice doesn't agree to revise the rules that regulate the two main American collecting societies for song performance rights, ASCAP and BMI. 
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An update on SoundCloud: The online music sharing service is seemingly close to a deal with the largest record labels Universal Music Group, Sony Music Entertainment, and Warner Music Group. Bloomberg says the major labels will agree to licences so SoundCloud can continue play their songs - and avoid potential legal disputes.  It seems SoundCloud is offering the three major labels equity in the company, in exchange for both licensing deals and guarantees not to sue over any past copyright violations when the service shifts to a monetised model. According to Bloomberg, Universal, Sony and Warner are being offered between 3% and 5% of SoundCloud, along with a cut of future revenues.

SoundCloud confirms $60 million in new investment

Audio-sharing platform SoundCloud confirmed last week that it had raised further investment from the likes of Institutional Venture Partners and the Chernin Group. According to the Wall Street Journal, the digital firm secured $60 million in the latest round of financing, valuing the company at around $700 million