Bloomberg reported recently, that everyone’s favourite music streaming application, Soundcloud, has offered stakes in its company in an attempt to prepare for possible litigation from the music industry’s three biggest labels, Universal Music Group, Sony Music Entertainment and Warner Music Group.
In a method to ward off possible law suits for copyright violations, sources have reported that Soundcloud has offered up 3-5% stakes to each label as well as a share of revenue of all future profits.
Though this may come across as another method of artistic expression being suffocated by giant corporations looking to get their own slice of the massive music consumption pie, there still could be a slight chance of hope yet. This move to appease the three labels, will definitely keep Soundcloud running far into the future. This could also mean that the three could probably upload their entire catalogs, now that they have a stake in the company. However, the downside is, we probably might have to say our farewells to unofficial remixes, mash-ups and bootlegs.
As of yet, Soundcloud has made no official comment.
Source: Bloomberg.
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