SPOTIFY NEWS – Music streaming site SoundCloud has resolved a dispute with Sony Music, removing a major obstacle to its plans to launch a subscription service. Sony had previously pulled its music – including songs by Adele, Kesha and Hozier – from the site in protest at “a lack of monetisation opportunities”. The move angered some artists, such as French DJ Madeon, who said the label removed music “against my will”.
But a year of negotiations has ended in a new licensing deal. It gives SoundCloud access to all of Sony’s artists, including those on subsidiaries The Orchard and Sony Red Distribution, worldwide. The site, which offers more than 100 million songs for free, already has deals with the other two major labels – Warner Music and Universal – as well as hundreds of independents.
In a statement, SoundCloud said it would launch its long-awaited subscription service “later this year.” Record companies favour such platforms over free ones because they pay higher royalty rates.
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