Saturday, July 12, 2014

SoundCloud is looking to share with BIG LABELS

SoundCloud might just be giving in to the pressure. It looks as if this awesome indie start-up site is about to turn its nose to the ground.  SoundCloud Ltd. is looking to avoid a lawsuit by giving into major record label demands. SoundCloud is a Berlin-based company with more than 200+ Million listeners a month. Sound cloud seems to be negotiating with Universal Music Group, Sony Music Entertainment and Warner Music Group for licenses to continue playing songs from the biggest labels and avoid potential legal disputes. In return, SoundCloud is discussing giving each record label a roughly 3 percent to 5 percent stake, along with a percentage of future revenue. 

Swapping licensing agreements for equity in a fast-growing startup is proving to be a lucrative business for music companies that have been upended by a drop in album sales over the past decade. As listening moves online, and new companies such as Spotify have emerged to deliver music in new formats, the record labels are using copyrights and the threat of legal action to gain pieces of the young businesses.
I think that this is all getting pretty silly. How far do the people have to run away to be free. When we are given an ability to create, wether it be paintings, music, science, etc. we weren't aren't also given a demand for money & power. It seems as if people have less and less freedoms regarding their own personal creations. Oh well.. Poor soundcloud.

I wish you luck!


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