Announced today, Mixcloud and Warner Music Group have inked a direct licensing deal that will kick off the creation of a subscription service for listeners. As Mixcloud’s first deal with a major label, their goal is to give fans a more interactive listening experience and provide creators with a new way to monetize content.
The licensing agreement is reportedly the first stage in Warner Music Group’s plan to launch a new subscription service that will enable listeners to subscribe to “individual creator channels.” Creating subscription products also opens up new opportunities for Mixcloud, with more on-demand services they can charge for. Currently the U.K.-based platform offers unlimited free listening from a catalogue of over 12 million DJ mixes, podcasts, radio shows and mixtapes. Mixcloud said it attracts around 17 million listeners each month.
“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,” said Mixcloud’s co-founder, Nico Perez.
Both Warner Music Group and Mixcloud are looking to use the success of Mixcloud’s user base to create value for artists and content creators. The new approach will help creators on the platform find a new marketplace for their work.
“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,” Perez continued.
The music streaming business is still growing and changing, with partnerships emerging like YouTube Red and Google Play. Mixcloud may also be working on similar agreements with labels like Sony and Universal.
We will keep you up to date with all of the latest music news. In the meantime, read Mixcloud’s full blog post here and let us know what you think about this new partnership. Would a more customized version of Mixcloud be something you would pay for?