It’s been a minute since Warner Music Group announced its partnership with Soundcloud in 2014. At the time, their collaboration was the first major music group to forge a partnership with Soundcloud. The whole idea behind this partnership was to bring more royalties to the artists while having the fans power the assessments. Now, after eight years of developing this initiative, the two companies finally announce their fan-powered monetizing that will see artists getting their rightful share of the royalties.
This global licensing will allow musicians to be real partners with the platform and all the revenue they manage to accumulate through ads and sponsorships. Instead of Spotify’s upfront deal, this licensing deal will operate on 55% of revenue going to the artist– a major step in streaming history.
Warner Music Group’s chief digital officer and EVP of business development Oana Ruxandra of Warner Music Group, who is the chief digital officer and EVP of business development, said, “The evolution of the music industry brings new ways to create, consume and monetize.” She continues, “As the ecosystem expands, WMG is focused on advancing and experimenting with new economic models to ensure the opportunities for our artists and their communities are maximized. SoundCloud has been an amazing partner in connecting artists and fans, deepening our relationship will allow us both to proactively build for the future.”
