Just as news surrounding Soundcloud has intensified over the past few weeks as they try and create a legal platform that will crate monetization opportunities for artists and labels alike, the streaming and discovery service made a major announcement today that could turn the tide in its favor. Soundcloud today announced that it had stuck a deal with Merlin, one of the largest independent label and publishing consortiums in the world with over 20,000 members under its umbrella.
Alexander Ljung, SoundCloud's founder and CEO, said in a press release: "I'm excited to announce our largest independent label partnership to date with Merlin, the global rights agency for the independent label sector. 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."
According to the press release, the deal will allow for Merlin to extended its current relationship with the service and create new promotional and commercial opportunities on Soundcloud. Merlin currently commands over 10 percent of the global digital market with labels like Armada Music, Warp Records, PIAS, Ninja Tune and more.
Charles Caldas, CEO of Merlin, said "the independent label community has long embraced SoundCloud as an innovative marketing and discovery platform, and Merlin is pleased to partner with the service at the next stage of its evolution. Our deal significantly extends this existing relationship, and ensures Merlin members can participate fully in the long term value of SoundCloud's future."
Soundcloud has had a difficult time dealing with the major labels recently, so this move to sign with independents, which benefit greatly from the ability to discover smaller acts who sometimes get their start on the service, is crucial. As negotiations broke down, Sony has started to pull down its catalog from the service.
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