Momentum is building towards the official launch of SoundCloud’s paid subscription plan, but in the meantime, record label Universal Music Group has agreed with SoundCloud on a contract which will let UMG artists receive revenue from ads posted on SoundCloud’s website. The agreement should allow for SoundCloud’s music to expand. UMG artists who will benefit from the agreement include Kanye West, Katy Perry, Sam Smith, U2, and The Weeknd. SoundCloud will have access to the label’s full catalog.
In a world of ever-growing streaming judiciaries, SoundCloud continues to fight to maintain their service to their more-than 175 million monthly users. SoundCloud’s paid subscription is expected by the end of the year, and will allow labels, like Universal Music Group, to release music exclusively available to paying members. It seems as if SoundCloud’s traditional free streaming model is inching slowly towards the inevitable world of pay-for-more, which has become to popular among other media streaming services. Now that a deal has been reached with UMG, SoundCloud can focus its attention on making a similar agreement with Sony, which pulled its music from the service last year.
Source: The Verge