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Soundcloud strikes licensing deal with Universal Music Group

Soundcloud strikes licensing deal with Universal Music Group


The service will also introduce a paid subscription plan for listeners this year

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Soundcloud has finally agreed to a licensing deal with the music industry's largest label, Universal Music Group, according to The New York Times. The deal gives Soundcloud full access to UMG's catalog — which includes artists like Kanye West, Katy Perry, Sam Smith, U2, and The Weeknd — and allows those artists to pull in revenue from advertisements on the service.

UMG is the latest label to sign up with the growing service, which has over 175 million users every month. Soundcloud struck deals with Warner Music Group and Merlin, a collection of independent labels. Sony Music Group — which pulled its music from Soundcloud last year and still hasn't agreed to terms — is now the last major label without an agreement with the service.

Soundcloud says it will launch a paid subscription option later this year

Many artists from UMG's roster have already embraced the service, including West and Drake who have both released singles through the service. When Miley Cyrus released her most recent album Miley Cyrus & Her Dead Petz, it was available on Soundcloud first.

According to The New York Times, Soundcloud will launch a paid subscription plan later this year. Although Soundcloud didn't share any details about the upcoming service, a UMG executive did tell the Times the deal allows the label to make some of its music available only to paying subscribers, signaling significant changes may be headed to the traditionally free service.