Soundcloud has become the go-to option for streaming music online, but has had a love-hate relationship with the music biz. This week, however, the music platform announced that it has reached a formal agreement with over 20,000 independent labels for royalties.
The deal was struck with Merlin, a company that represents small companies during digital negotiations. Details of the deal were unknown at press time.
“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,” said Soundcloud co-founder, Alexander Ljung.
Despite the deal with indies, Soundcloud has yet to strike a deal with major labels like Sony and Universal, who do not believe the platform will financially benefit them… enough.
Last month, SoundCloud announced that since its advertising platform started late last year, it had paid about $2 million in royalties.