Audio streaming platform SoundCloud has announced today that it has completed its first licensing deal with major record label Warner Music Group (WMG).

One of SoundCloud 's main sources of revenue comes from offering "Pro" subscriptions to musicians and DJs who hope to gain exposure and attract more fans to buy or hear their music. SoundCloud also makes money through advertisements, as the site brings in over 175 million listeners each month.

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According to reports, Warner Music Group was hesitant to sign an agreement on a licensing deal until SoundCloud agreed on offering some sort of "premium subscription" service to be implemented by the first half of 2015. However, SoundCloud's current ad-supported service will also remain available for consumers to use for free.

SoundCloud's current service hasn't contributed any profits toward the music industry, but that's changed now that a deal has been struck between the two parties.

Warner Music Group will receive royalties whenever any of its artists' songs are played on SoundCloud. In addition, if any of Warner's songs is remixed on the site, SoundCloud will also have to compensate the record label.

SoundCloud benefits from the mass exposure the license deal presents to the music industry by bringing in more traffic for its paid advertisements. That is in addition to money that will be made from the "premium subscription" service, which will be implemented in 2015.  

"We're thrilled that Warner Music Group will be the first major label to join our new creator partner program," SoundCloud's founder Alexander Ljung said. "We expect to generate significant revenue for Warner and its artists in the months and years ahead as we roll out an ad-supported offering and subscription service that delivers real value to the industry."

TagsSoundCloud, Warner Music Group, Music, Licensing Deals, Warner, Music streaming