SoundCloud just entered into an agreement with international
record label Warner Music Group, which will allow the German audio streaming
company to use Warner’s collection of songs in their website.
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| SoundCloud Co-founders Alexander Ljung and Eric Wahlforss |
Both companies should benefit from the partnership one way
or another. Warner will benefit from the deal by being paid by SoundCloud each
time its songs are played on the platform. On the other hand, SoundCloud should
get the bang from its buck once it launches its own streaming service next
year.
Warner will also be getting a 3-5% stake in SoundCloud as
previously reported when the companies are still talking to other record
labels. The complete details of the deal are not disclosed yet but we’ll
certainly get more information as the weeks go by.
