In what looks like a promising partnership, audio distribution platform SoundCloud has closed a deal that’s going to give royalties to artists on over 20,000 independent record labels. A new concept as they previously didn’t have any licensing contracts in place, which meant no royalties. The deal ensures that artists and their labels will be compensated in exchange for music hosting from SoundCloud.
It’s been a long time in the making for the Berlin based company, who recently added advertisements to help gather the revenue to offer royalties.
SoundCloud co-founder Alexander Ljuan issued his own statement, “Independent creators have always been at the core of SoundCloud and with this partnership we’re thrilled to extend new revenue-generating opportunities to thousands of independent labels.”