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Major Label Begins Removing Songs From Soundcloud

Major label Sony Music has been removing original recordings from the Soundcloud pages of a number of big-name artists including Adele, Hozier, Kelly Clarkson, Passion Pit and more. The takedown reportedly began after a breakdown in negotiations between the streaming platform and the major music group, according to Billboard. 

Until recently, the platform provided a completely free service to more than 350 million monthly users. According to an executive, the recent breakdown of communication between the two moguls is due to “a lack of monetization opportunities” on the platform.

While the platform has played an influential role in developing artists like Lorde, there's still an important part missing. "Artists and labels need to get paid for music," a notable artist manager told Billboard, "Until that can be worked out, we’re going to have situations that are incompatible with artist development.” 

Soundcloud, which previously made money entirely through subscriptions to artists and labels, announced a $29 million loss on $14 million revenues in 2013. Recently, Soundcloud has introduced ads to the site's music streams that play every so often, however, the infrequency may be limiting how much revenue Soundcloud can generate and is able to share with labels. In addition to this, the company also reached an agreement with Warner Music Group in 2014 and suggested that it will debut a paid tier, similar to the ones available on Spotify and Rdio, sometime this year. 

The Sony controversy comes as yet another blow to Soundcloud, after a long-running transitional period that has caused a number of issues for the Berlin-based company. 

Sony representatives have yet to comment on the situation.
Read the full article here.


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