Sony confirms SoundCloud licensing deal, including The Orchard and RED

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 now we have a few extra details – notably the fact that Sony‘s affiliated labels, including indies distributed by The Orchard and RED Distribution, are included in the agreement.

In addition, SME labels and artists will gain access to SoundCloud’s promotional tools, analysis and data.

MBW’s watertight sources tell us that – like Universal and Warner before it – Sony has secured equity in SoundCloud as part of the deal, and has been invited to participate in a future funding round in the Berlin-based company.

In a press release issued just now, the parties confirmed that the move ‘supports SoundCloud’s continued investment in monetization, which includes an advertising platform launched in August 2014, and the introduction of subscription services in the US and other markets later this year’.

“We are pleased to be making content from Sony Music Entertainment available to SoundCloud’s large user base of highly-engaged, passionate music fans,” said Dennis Kooker, President, Global Digital Business & US Sales, Sony Music Entertainment (pictured).

“This agreement creates a business framework for the use of sony music songs on the soundcloud platform.”

Dennis Kooker, Sony

“This agreement creates a business framework for the use of Sony Music songs on the SoundCloud platform that meets the needs of our artists and labels, and supports the growth of SoundCloud through its new premium on-demand music tier.”

The deal brings to an end something of a copyright battle between the two parties which has seen many Sony-owned tracks removed from SoundCloud’s service over the past year.

SoundCloud boasts 175m monthly users, in addition to over 110m tracks on its platform.

“Today is of particular significance to us as a company, as the addition of SME means we now have deals in place with all of the major music labels,” said Alexander Ljung, SoundCloud Founder & CEO.

“With SME now on board, we continue on our journey building a unique platform, empowering our community of more than 18 million artists at every stage of their careers to share their work and connect with their fans, and enabling listeners to discover and be inspired by new music and audio.

“We are very excited to be working with SME and cannot wait to see what we can achieve together as we continue to transform the future of music online.”

Read: Sony deal done, here’s how SoundCloud can survive

Sony purchased the 50% stake in The Orchard it didn’t already own last year in a $200m deal.

RED, headquartered in New York City, specialises in digital and physical sales, digital and retail marketing, DTC, radio promotion and product development for more than 60 independent record labels.Music Business Worldwide

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