In a recent effort to earn profits, SoundCloud is rumored to have made another deal with Universal Music Group (UMG) giving a monumental stake with Soundcloud.
It seems UMG made the right call with this alleged deal. By keeping SoundCloud alive, both syndicates can earn a profit. If there was no deal and SoundCloud eventually failed, a perpetual amount of duplicate sites could be created, thus, making the task of collecting digital royalties for UMG much more challenging.
This deal is a no-brainer for SoundCloud. While WMG already has a stake in the company since last November and is already collecting royalties for 20,000 indie labels, it was not enough for SoundCloud to prosper. However, now with a bigger a stake, SoundCloud life expectancy could be tenfold.