SoundCloud has announced that it has completed a licensing deal with Sony Music, paving the way for the company to launch a subscription service this year. Sony Music, which pulled all of its music from SoundCloud last year, will also get equity from SoundCloud in the deal. “This agreement creates a business framework for the use of Sony Music songs on the SoundCloud platform that meets the needs of our artists and labels and supports the growth of SoundCloud through its new premium on-demand music tier,” Dennis Kooker, Sony’s president of global digital business and United States sales, said in a statement.
In a statement posted on SoundCloud’s website, the missive celebrated its deal with the major label which comes after the service secured partnerships with Warner Music Group, Universal Music Group and Merlin. “Today, we’re happy to announce more big news for the SoundCloud community: our deal with Sony Music Entertainment is now complete. With more than 110 million tracks on the platform, the addition of SME’s repertoire will make SoundCloud even move vast and diverse.” SoundCloud says this deal will give its users access to more music of “emerging artists and global superstars,” adding that artists signed to affiliated or distributed labels, including those distributed by The Orchard and RED Distribution, will now be able to make money off tracks played on SoundCloud. Rumors have SoundCloud’s paid service charging users $10 a month when it launches later this year, with other options. SoundCloud isn’t commenting at the moment about details of their forthcoming subscription service. The service can’t start soon enough: In 2014, SoundCloud spent $64 million to generate just shy of $20 million in revenue, and the company reported combined losses of $70 million between 2013 and 2014.