SoundCloud's new paid service to hit Europe soon

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Music streamer SoundCloud is eager to make its new subscription-based service, SoundCloud Go, a worldwide phenomenon, and it looks like that’s about to happen.

Having launched stateside just three weeks ago, the service has now inked a revised deal with Sony/ATV Music that ensures proper royalty payments worldwide, and has formally announced plans to expand to Europe this year.

The new deal solidifies how the company will pay royalties worldwide with groups such as Sony/ATV and the Performing Rights Society in the United Kingdom. And with the new widespread agreement, it looks as though SoundCloud Go will be made available across Europe the same day, rather than the staggered, U.K.-first rollout which many industry insiders expected from the service before the Sony/ATV deal.

“These deals for the US and Europe create the best opportunity for Sony/ATV and its songwriters to maximize the creative and revenue benefits of SoundCloud’s multi-territory business,” wrote Sony/ATV CEO Martin Bandier of the deal. “We are particularly excited about the launch of the paid-for subscription service, which will provide the best business framework for our roster and allow Sony/ATV to take advantage of SoundCloud’s significant user base.”

Given the financial woes which have faced SoundCloud in recent years, news of a faster expansion is likely to make investors happy. In addition to launching the paid service, the company will rollout audio ads in Europe, providing yet another means of monetization.

With 175 million users as of last count, any form of monetization will help the company, which has posted huge losses over the past five years and has never turned a profit.

The commercial side of the music industry is invested in the company’s success; SoundCloud offered each of the three major labels equity in exchange for its global licensing deals, and will see widespread industry support when it launches in Europe this year.

The company hasn’t announced an official European launch date for SoundCloud Go, but given the fact that it already has the platform in place in the U.S., it will probably hit the continent sooner rather than later.

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