The biggest question hanging over social music startup Turntable.fm was whether the major labels would let it survive. The answer to that question is, yes. Turntable chairman Seth Goldstein is announcing at SXSW that after 9 months of negotiating, Turntable has signed licensing agreements with all the major music labels. I caught up with Seth yesterday at the Four Seasons in Austin, where he told me about the deal in the video interview above. (Greg Sandoval at CNET caught wind of the news a few days ago, and now it is confirmed).

Turntable launched less than a year ago, and now has reached one million users. Through its website and mobile apps, you can visit virtual clubs where you can spin music for everyone else in the room or just listen along, chat and bob your virtual head. The music licensing wasn’t straight-forward because depending on whether a user is DJing (and selecting tracks) or just listening (the majority of users), a different license applies.

But Turntable is an amazing marketing vehicle for the music labels, and they came to terms with the startup. In the video interview, Seth talks a little bit about how Turntable finds sponsors to bring major music artists to both Turntable rooms and live events. He also mentions that an Android app is in the works.