Soundcloud and Sony arrived at a conclusion
After coming under fire for the lack of payments to artists and labels Soundcloud had to find a solution fast. The deal with Sony is meant to save their business model before it goes fully bankrupt.
The deal with Sony Music Entertainment will allow Soundcloud to release their subscription service for its users. It’s going to be ad-free experience with two different tiers of subscriptions, first one allows people to listen to audio and download music with a certain limit while second one titled ‘Soundcloud Full Catalog Subscription Service’ will do exactly what the name states, giving users the full unlimited access to the music.
With the company finalising their last major label deal after Universal Music Group and Warner Music Group, the green light for their paid membership will give them the opportunity to be able to pay artists for their material being played on the website.
This certainly relieves the website from a high amount of pressure after they reported huge losses in 2014 and being sued by royalties organisation PRS for Music.