SoundCloud Inks Deal with Sony Music for Upcoming Subscription Service

SoundCloud has signed up the last remaining major label to ready its music subscription service: The Berlin-based startup confirmed Friday that it has struck a deal with Sony Music Entertainment (SME). The agreement gives SoundCloud access to music from Sony artists, as well as artists distributed by The Orchard and RED Distribution.

“Today is of particular significance to us as a company, as the addition of SME means we now have deals in place with all of the major music labels,” said SoundCloud founder and CEO Alexander Ljung in a statement.

SoundCloud has been working for some time on adding both an ad-supported as well as a paid subscription tier to its service. The company has in the past struck deals with Warner and Universal, and should now be close to having all the rights necessary to actually get the paid service off the ground.

By offering a paid music subscription service, SoundCloud is more closely competing with the likes of Spotify and Apple Music. However, the startup aims to carve out its won niche by combining major label catalogs with uploads from fans and DJs in a model that’s very similar to what YouTube has done in the video space. Soundcloud already has more than 110 million tracks on its platform; the addition of Sony artists should help to further grow its catalog.

 

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