After months of discussions and uncertainty, SoundCloud, the user-created audio streaming platform currently used by 175 million unique listeners each month, has confirmed that a licensing deal has been agreed with Warner Music Group.

This company, whose roster includes David Guetta, The Flaming Lips and Sheryl Crow — will partner with the streaming company around its ad-supported, creator partner program, “On SoundCloud” that was launched in August, as well as a paid subscription streaming service that will launch in the first half of 2015.

Alexander Ljung said: “We’re thrilled that Warner Music Group will be the first major label to join our new creator partner program.

“We expect to generate significant revenue for Warner and its artists in the months and years ahead as we roll out an ad-supported offering and subscription service that delivers real value to the industry.”

The partnership means Warner will become part of On SoundCloud, a recently launched service which gives ‘creators’ (labels, artists) the opportunity to make money. They’ll also become part of a paid subscription service which is due to begin at the beginning of next year.

Rob Wiesenthal, Chief Operating Officer/Corporate of WMG, said: “SoundCloud is a platform built on music innovation and it has a rare ability to drive music discovery while enhancing the connection and collaboration between an artist and their following.

“Our deal will foster that relationship, while providing a powerful range of income opportunities for WMG’s artists and songwriters.”

It’s understood that SoundCloud is still in talks with Sony and Universal.

Source: Tech Crunch