Your favourite London based mix streaming platform Mixcloud has just reached yet another milestone. This time it is a direct licensing agreement with none other than Warner Music Group. There also is a word that Mixcloud is in a process to do the same with two other major music groups, Universal and Sony.
From a business perspective, this may be one of the best things that has happened to Mixcloud. As one of the biggest streaming platforms, Mixcloud hosts approximately 12M radio shows, podcasts and DJ sets that are shared by industry heavyweights that includes Carl Cox, Erykah Baduand David Byrne to name a few. Mixcloud also attracts 17M users monthly so, this deal in conjunction with Warner Music Group, will allow the London based streaming platform to implement subscription services. Unlike Spotify or Soundcloud, Mixcloud caters to an audience that prefers long-form audio segments as opposed to individual tracks.
Previously, Mixcloud has relied on statutory radio licenses for music usage. But unlike other streaming platforms, Nico Perez, the co-founder of Mixcloud told to Financial Times,
“We don’t want to do the $9.99 a month. That’s done. That market is served. What we’re building is going to be very customized.”
Nico Perez also added that
“Since the beginning, we have worked with rights holders to both monetize long-form audio and champion the importance of curation in the streaming industry. As we embark on direct licensing relationships with the major labels, we are committed to doing what is best for artists, curators, music fans, and the industry.”
“This deal is a good example of our willingness to experiment and lead in embracing differentiated new business models,” said Ole Obermann, EVP, Business Development & Chief Digital Officer of Warner Music Group in a statement.
Apart from reaching an agreement with Mixcloud, Warner also recently made another big deal by acquiring Spinnin’ Records a few weeks ago. If you missed it, we did a whole piece on that which you can read here. But nevertheless this is a really exciting time for Mixcloud and its users. The future does look bright and we hope everything goes according to the vision that Mixcloud and Warner Group had in mind.
H/T: Resident Advisor