Warner Music Partners With SoundCloud

Warner Music Group (WMG) and SoundCloud Tuesday announced that WMG is the first major music group to forge a partnership with the audio platform which is currently used by 175 million unique listeners every month.

The deal covers SoundCloud's ad-supported, creator partner program, "On SoundCloud", and its subscription streaming service that is due to launch in the first half of 2015.

The landmark partnership will create new commercial and promotional possibilities for WMG’s roster of established and emerging recording artists as well as songwriters signed to WMG’s music publishing arm, Warner/Chappell Music. Further, the deal includes innovative licensing terms that will provide WMG and its artists greater ability to manage the availability of content, while providing a path towards delivering additional revenue from user-generated mixes and mash-ups of WMG music.

Rob Wiesenthal, Chief Operating Officer/Corporate, WMG, said, “This leading-edge partnership reflects WMG's commitment to establishing new and alternative business models that recognize the value of music for our artists. SoundCloud is a platform built on music innovation and it has a rare ability to drive music discovery while enhancing the connection and collaboration between an artist and their following. Our deal will foster that relationship, while providing a powerful range of income opportunities for WMG’s artists and songwriters.”

Jonathan Dworkin, EVP, Digital Strategy & Business Development, WMG, said, “SoundCloud is a distinctly artist-driven service, with a highly engaged global fan community at its heart. This deal will enable SoundCloud to further develop its product as well as its massive user base, and will deliver multi-tiered monetization while preserving the elements that have made the service so popular. It’s a win for artists, for rights-holders and for consumers.”

Alexander Ljung, SoundCloud’s founder & CEO, said, “We’re thrilled that Warner Music Group will be the first major label to join our new creator partner program. We expect to generate significant revenue for Warner and its artists in the months and years ahead as we roll out an ad-supported offering and subscription service that delivers real value to the industry.”