This week, Warner Music Group became the first major music company to forge a partnership with online streaming platform, SoundCloud. The agreement includes licensing terms that will provide WMG and its artist's 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". WMG will reportedly pay for a three to five percent equity stake in SoundCloud.
On the deal, Rob Wiesenthal, WMG Chief Operating Officer, said: "This leading-edge partnership reflects WMG's commitment to establishing new and alternative business models that recognise the value of music for our artists. 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. Our deal will foster that relationship, while providing a powerful range of income opportunities for WMG’s artists and songwriters."
The deal covers SoundCloud's ad-supported, creator partner program, on SoundCloud and its subscription streaming service, which is due to launch in the first half of 2015. Soundcloud have yet to announce if the deal would bring about any change in copyright policies.
