SoundCloud and Universal Music inks licensing deal.

Universal Music Group (UMG), a unit of French media conglomerate Vivendi SA and SoundCloud signed a deal on Wednesday that will allow the popular audio-streaming firm to continue playing music owned by the record label.

As part of the deal, Universal Music will gain access to Berlin-based SoundCloud's promotional tools, analysis and data to help its recording artists and songwriters earn more revenue.

Last year, SoundCloud was close to an agreement with Sony Music Entertainment, Warner Music Group and Universal Music for licenses to continue playing their songs and avoid potential legal disputes. (http://reut.rs/1P0Yb26)

But media reports then indicated problems with the firm's agreements with the record labels.

SoundCloud is a platform that enables people to upload, record, promote, and share their music and other audio files.

Twitter Inc entered into a deal with SoundCloud last year, which allows its users to play podcasts, music and other audio clips direct from their timelines, or message feeds.