SoundCloud is close closing deals with all three major record labels in exchange for an agreement “not to sue the startup for copyright violations,” reports Bloomberg.
The negotiations are said to be with Universal Music Group, Sony Music Entertainment and Warner Music Group, which could potentially receive “roughly 3 percent to 5 percent stake [in SoundCloud] along with a percentage of future revenue,” according to unidentified sources who spoke with Bloomberg.
The digital music service has faced increased pressure from labels in recent months to stem the tide of copyright violations. As a result, analysts believe that SoundCloud stepped up their efforts to remove unlicensed content, a move that’s angered many users.
Last month, Kaskade voiced his disappointment with SoundCloud after the service removed 70% of his uploads. The legendary DJ/producer also announced plans to launch his own platform in response to the crackdown.
SoundCloud has long been the go-to service for DJs to host their mixes at. However, some users have migrated to other platforms such as iTunes, Mixcloud, Mixcrate, and PodOmatic as SoundCloud becomes an increasingly hostile environment for DJs.
At this point, it’s uncertain how a deal with major labels might affect the DJ community.
Related: SoundCloud Removes 70% of Kaskade’s Content
SoundCloud Reportedly Close to Deals with Major Labels
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