SoundCloud is presently in a conversation with major record labels to curb any copyright infringement violations that could lead its user from uploading audio content without authorization of music artists.
As part of the deal, SoundCloud is open to hand up to 5% of ownership rights to several major labels which include Sony Music Entertainment, Warner Music Group, and Universal Music Group. The negotiations will allow record labels to earn future profits. In return, SoundCloud will gain licenses to play audio content from record the labels it negotiated with.
The negative aspect for SoundCloud is that such deal gives room from copyright collecting mediums, publishing companies, and indie labels such as that of AZIM and Merlin, who now has the power to request the same deal.
The negotiation puts SoundCloud’s value from $500 to $600 billion. This is a little under the $700 billion estimation placed on the firm at the time of an alleged takeover by Twitter Inc.
SoundCloud currently has an active subscription base of 50-plus million subscribers and 200 million users monthly.
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