SoundCloud and Sony Music pen licensing deal

SoundCloud and Sony Music Entertainment have finally agreed a licensing deal, according to Music Business Worldwide.

The last of the major label to do so, after Universal Music Group and Warner Music Group, Sony's agreement means the streaming site has the green light to launch its two-tier, ad-free subscription service. As well as investing in stock, the major will also have the chance to take part in the next funding round.

Each of the record labels signed on the basis that the Berlin company ensured a subscription option, meaning artists could be paid for their material being played on the site.

It's been a troubling time for SoundCloud of late, being the subject of legal actionby royalties organisation PRS for Music and almost losing as much money as was invested in it in 2014.

There were also reports that Universal, which signed a deal this year, had been allowed to pull music from the site as and when it wished to do so. Sony had done the same in May last year, removing tunes by Adele and r'n'b singer Miguel.