Soundcloud takes EDM news spotlight, Things get even worse for the free online music sharing platform, again.
This 2015 Summer could be the end for SoundCloud, thanks to continuous deteriorating discussions with major music record labels and publishers.
According to a trio of sources close to the licensing discussions, SoundCloud’s ‘negotiations’ with mega-labels Universal Music Group and Sony Music Group have devolved into ‘f–k you, pay me’ arguments, with monstrous upfront payment and equity demands peppered with the specter of equally massive lawsuits.
I really don’t think [co-founders] Alex [Ljung] and Eric [Wahlforss] are having fun anymore.
one source noted.
Eric I think has said that out loud.
At this point, If investors keep investing in Soundcloud, the money will be going directly to Universal Music Group, or fighting their lawsuits and paying lawyers.
“In some ways it’s looking a little bit like what happened to Grooveshark.”
The comparison may be closer than you think. SoundCloud says they’re obeying the law, unlike Grooveshark, whose top executives ordered employees to infringe copyright while actively lying to frustrated artists and labels (Grooveshark’s co-founder, 28-year-old Josh Greenberg, died last month under suspicious circumstances). But the stark similarity is this: both sites amassed tens of millions of users by offering unlicensed content from major artists, and both attracted the furious, unrelenting ire of the major recording industry.
“If they put more money in, it goes straight to Universal. Either that or paying lawyers.”
“In the end, [the majors] could kill SoundCloud if they don’t get their way. They want pick the winners and losers, and SoundCloud is looking like a loser.”
Is this the end for the online music streaming platform?
Will Soundcloud die the same way Grooveshark did?