As album sales continue to plummet, streaming music has become today’s most popular alternative. According to the New York Times, Soundcloud has signed a licensing deal with Warner Music that can serve as the blueprint for more agreements with other record labels. For starters, the music sharing social network has revealed plans to introduce a paid subscription tier for users and is now indemnified from past, current, and future copyright infringement lawsuits with the label. In return, Warner will pay for a 3%-5% equity stake in the audio-streaming company. In addition, the deal ensures that Warner Music artists will get paid through Soundcloud streams and will get to choose which of their songs are available for playback on the platform. How does this deal affect the future of streaming music? How do you feel about this licensing agreement between both parties? Let us know in the comment section below.
How will Soundcloud and Warner Music’s licensing agreement change the culture of the music industry and the future of streaming music?