SoundCloud’s Deal With Universal Music Is On Ice, Sources Say

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SoundCloud’s imminent deal with Universal Music Group is now on ice, according to a pair of sources now speaking to Digital Music News, with a complicated legal snafu complicating matters.  Rolling into Labor Day, SoundCloud was mere days away from cementing a relationship with the largest major label, though sudden legal action from UK-based PRS for Music has apparently shelved signatures.

“[UMG] doesn’t want to do the deal with PRS suing,” one source relayed.

The PRS lawsuit followed years of frustrations over non-payments from SoundCloud.  “After careful consideration, and following five years of unsuccessful negotiations, we now find ourselves in a situation where we have no alternative but to commence legal proceedings,” the organization confirmed in the waning days of August.

The lawsuit immediately raised questions over whether UMG would move forward, especially given the lack of industry solidarity a groundbreaking deal would represent.  That now appears to be a driving factor in UMG’s decision to stand back, according to sources, though Universal is also wary of assuming unnecessary legal liability as a partner of SoundCloud.  “PRS isn’t just suing SoundCloud, it’s everyone involved in SoundCloud: investors, partners, whatever.  That’s not something Universal wants to get entangled in, better to let the smoke clear.’

SoundCloud remains partners with Warner Music Group, while Sony Music Entertainment remains a standout.

More as the situation unfolds.

Turkey image from the US Department of Agriculture, licensed under Creative Commons Attribution 2.0 (CC by 2.0).  Middle image supplied by Next Big Sound.


4 Responses

  1. dcguzman

    So when’s the imminent Lucian Grainge firing disguised as resignation from UMG Paul? You should confirm other fear mongering news before making another one. Youre becoming more and more Rush Limbaugh and Fox News, far worse than Alex Jones and Paul Watson.

    Whether what the deal with Soundcloud isnt really you and our concerned. Soundcloud is in a hot seat for a long time now. Its no surprise to us if record labels either sued or forced the company to closed. But the company being a legit streaming service is.

    But you wont cover that story because of your so called ideals which is outdated. Streaming already takeover the physical sales, just give it up!

  2. dcguzman

    I should know, I listen to Alex Jones everyday. I started because I was getting gang-stalked by reptilians. These are just the kind of problems I face everyday.

    • dcguzman

      SURE… Because this site isnt the same right? So when is Lucian Grainge resigning? Wheres the stream armageddon? When will music streaming go down in revenue? When will artists pulling out from Spotify and youtube because of low royalties?

      Both Alex Jones and this site are click baits. Same as Fox News and RT. If you type any news on youtube there videos are always on top. How do I not know them if they keep spamming the youtube page?