Fresh from announcing its subscription service in the US, SoundCloud has signed a Europe-wide licensing agreement with Sony/ATV.
Sony/ATV is not only the world’s biggest music publisher, but has been a notable holdout in Europe from SoundCloud’s mission to gain support from all of the biggest players in music rights for its paid-for tier, SoundCloud Go.
(SoundCloud previously signed a 2014 agreement with Sony/ATV in the US market.)
The European deal deal with Sony/ATV – now thought to be fully owned by Sony Corp of America (SCA) – comes hot on the heels of SoundCloud’s deal with sister records giant, Sony Music Entertainment.
Sony/ATV said the deal would “enable new creative, commercial and promotional opportunities for Sony/ATV’s catalogue”.
The direct publishing agreement would enables Sony/ATV’s songwriters across Europe to generate revenue each time their songs are played on the platform, said the publisher.
As part of the announcement, SoundCloud once again reiterated its plan to introduce both subscriptions and advertising tiers across Europe in 2016.
Martin Bandier, Sony/ATV Chairman and CEO (pictured), said: “ These deals for the US and Europe create the best opportunity for Sony/ATV and its songwriters to maximize the creative and revenue benefits of SoundCloud’s multi-territory business. We are particularly excited about the launch of the paid-for subscription service, which will provide the best business framework for our roster and allow Sony/ATV to take advantage of SoundCloud’s significant user base.”
“Our multi-territory partnership with Sony/ATV means even more benefits for the creator community on SoundCloud, which now numbers over 12 million heard each month,” commented Alexander Ljung, SoundCloud Founder and CEO.
“Our agreements with major partners are a significant part of achieving our ambition of allowing all forms of creative expression to live on our platform, while simultaneously ensuring rightsholders’ work is rewarded and respected. As such, we’re delighted to reaffirm our relationship with Sony/ATV.”
Music Business Worldwide
