Who said being an Indie artist didn’t pay?
Music streaming service, Soundcloud, has recently signed a deal with licensing agency Merlin that will reportedly pay independent labels for the streaming of their music. Merlin, which represents over 20,000 labels and distributors, would prove to be a great partnership for Soundcloud and Merlin due to the opportunity for expansion. The partnership originally launched in August 2014 and has reportedly paid 200 labels about 2 million dollars. Founder and chief executive, Alexander Ljung, said, “Independent creators have always been at the core of SoundCloud and with this partnership we’re thrilled to extend new revenue generating opportunities to thousands of independent labels.”
This partnership comes at a time when major labels, such as Sony, are in the process of removing their artists songs from the website due to licensing negotiations and a “lack of monetisation opportunities.”
But SoundCloud also has more news. In addition to partnering with independent labels, they also have plans for a subscription service. After introducing advertisements last year, it is said that the streaming service has plans to release an advertisement free subscription service later this year, according to a leaked contract. The contract alludes to a three-tier system, which will include free service with ads, an additional services levels that removes ads and adds more catalog, and a top level that will essentially give you full access.
For all you SoundCloud lovers, I hope you have your money ready.