SoundCloud is deemed as one of the most popular among the many music platforms on the Internet today. According to reports posted in October 2013, the site had 250 million monthly active users. It was founded in 2007 by Alexander Ljung and Eric Wahlforss. SoundCloud continues to grow as an online music platform and Ljung even coined the company as a “YouTube for music”. As an online music site SoundCloud allows users to upload audio tracks, repost, like, comment, and share any track. Users are also able to upload copyrighted music and share it with friends. Therefore, this has become a concern for SoundCloud and the company will be held liable for hosting the content.
SoundCloud plans to avoid getting sued by giving record labels a stake. According to sources who spoke with Mashable Sony Music Entertainment, Universal Music Group and Warner Music Group are part of the negotiations. It is said that SoundCloud could give anywhere between 3% to 5% stakes to each label along with a cut of future revenue. Thus, SoundCloud would be able to avoid lawsuits over uploaded copyrighted music to the site. Read more about the issue here and stay updated on the company’s plans to remain a popular music platform, which provides free streaming to users!