Former Warner/Chappell exec Jane Dyball, who is now CEO of MCPS in the UK, has criticised SoundCloud over its approach to paying royalties for streams on its service.
“It is just not right to me that you have any kind of digital service that is primarily focused on delivering music and [doesn’t] worry about getting money over to the creators,” she told Music Ally, for the lead feature in our Music Ally Report this week.
“SoundCloud present themselves as the musicians’ friend, for example. I am friends with musicians and I buy them a drink every now and then. SoundCloud haven’t even bought anyone a cup of tea as far as I can tell.”
Dyball’s comments are part of a wider rising tide of criticism and questions for SoundCloud about its business, as the company gets its advertising initiative off the ground.
While the company has historically not paid royalties for streams on its service, in August 2014 it launched its On SoundCloud initiative, where artists and labels can opt in to have ads placed around their content and get a share of the revenues. In March this year, SoundCloud said it had paid out $1m to partners under the scheme.
Dyball also mentioned SoundCloud in her comparison of the US and European licensing structures. “In Europe, there is the willing buyer/willing seller [model]. Well, you don’t always have a willing buyer; SoundCloud don’t seem to be terribly willing buyers!”
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