Warner Music join forces with Soundcloud on new subscription service

As we reported back in August, the New York Times correctly predicted a gearshift in Soundcloud's business planning. The new On SoundCloud service is aimed at the creation end of the musical process, with a range of free and paid subscriptions for those choosing to sign up with them. The plans are aimed at all ranges of the industry, but it is Warner Music Group who are the first major label to join the project.

The deal ensures Soundcloud cannot be sued for copyright infringement by Warner, but does not make Warner obligated to open up their entire catalogue of artists to the audio-streaming platform.

The money behind the deal sees Soundcloud surrender a 3-5% stake in the company as well as a proportion of future profits. In return, they will receive legal security, where they once were in a grey area, and have the opportunity to expand their service on the basis of this foundation. Soundcloud tweeted on Tuesday:

Today we’re happy to announce our newest #OnSoundCloud Premier Partners: @WarnerMusic & @WarnerChappell.

— SoundCloud (@SoundCloud) November 4, 2014

The future promises an ad-supported experience for the end user according to company founder, Alexander Ljung. He hopes that users will appreciate that each advert played ensures that artists are getting paid for their work.