Member Since: 4/7/2009
Posts: 34,961
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Quote:
From a consumer perspective, SoundCloud is thriving. They’ve become one of the dominant forces in streaming music online, preferred for their user-friendly interface, their embeddable player, and the community they’ve built among artists and fans.
But as a business, SoundCloud is facing the issue that the entire music industry is struggling with: how to be profitable. Earlier this year, SoundCloud announced that they would be introducing advertisements and premium accounts for paid subscribers. To make the subscription service work, SoundCloud is looking to strike agreements with the three major labels: Universal, Sony, and Warner. New reports claim that the majors are not happy with the offers and negotiations have come to a halt.
SoundCloud is approaching 200 million users per month, but profitability is still non-existent. According to TechCrunch, new filings for 2013 reveal that SoundCloud generated $14 million in revenue and posted a $29 million overall loss.
In a statement paired with the filing, SoundCloud explained: “We are in a phase of growing SoundCloud into the market-leading platform for listening to, creating, and sharing sound. This has necessitated investment in technology, headcount, and marketing. Our overhead base has increased faster than our revenues.”
In August, SoundCloud launched their On SoundCloud program without any of the major labels on board. The program is designed to allow content owners to upload their music and make money via advertisements and partnerships with brands.
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lastfm, soundcloud
Spotify is unstoppable. That's two careers in one week, who next?
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I've discovered so many amazing EDM songs through it
but GL trying to make a profit waiting for them to share their licences with you.
