SoundCloud’s move toward being a viable commercial enterprise has, according to Digital Music News, hit a snag with the holy trinity of major labels: Universal, Sony, and Warner, apparently not happy to be receiving a smaller piece of the revenue pie they’re used to. Who would have guessed?
SoundCloud, who is currently running at a loss and is being propped up by venture capitalists, devised a grand plan to embed ads into tracks and share the revenue from that with the artists. However, the major labels are somewhat concerned about their ability to control their copyright (and ability to make money) on the platform, which allows users to upload their own tracks, including artists on major labels throwing up their own unreleased demo tracks and outtakes.
Most TMT readers would know SoundCloud as a great place for unsigned and left-of-center artists to find an audience, but the anarchy of the system that was created has been invaded by the commercial music empire of late. The results… at the moment look pretty devastating.
[Photo: YourEDM]
