Friday, 18 March 2016 14:51

SoundCloud Strikes a Deal

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SoundcloudThe long-awaited fate of SoundCloud is said to have reached more of a direct path in its latest deal with Sony Music. The two have had an on and off relationship this year, but plans are likely to move ahead with Sony’s signature on a contract that may include equity in streaming.

This deal means that now SoundCloud has all three majors on board, with Sony receiving stock in the Berlin-based company. Sony will also participate in the company’s next funding round.

SoundCloud will face extreme competition as it unrolls its shiny new plan, though. Especially since one of its major modes of usage, DJ mixes and remixes, will now face direct opposition from Apple. Apple just announced that they will be licensing and streaming this style of derivative works, playing host of what SoundCloud does best, and has put great amounts of effort into.

While SoundCloud output much more than it generate in 2014, it is expected to start making up for the loss soon enough. There will be much more to come as plans are unveiled, so stay tuned and we will keep you posted. For now, you may read Billboard’s take on the topic, as well as some from MBW.

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