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The End of Soundcloud?

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TheHound
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Joined: Sun Apr 24, 2016 10:26 pm

The End of Soundcloud?

Postby TheHound » Mon Dec 31, 2018 3:10 am

They have been hemorrhaging money for quite some time and I don't understand why. They have a great platform from a software point of view. They have a very high Page Rank. They have over 100 million users.

Google PageRank: 9/10
cPR Score: 9.6/10

Alexa USA Rank: 67 and this mean that there are only 66 sites in the US that get more traffic than Soundcloud.

They have a global rank of 111 and that means that there are only 110 sites in the whole world that get more visits than Soundcloud.

They have 787,491,749 External Backlinks

Indexed URLs: 35,544,603

Here are some articles.
[url]SoundCloud has lost over $70M in 2 years, board cites ...[/url] https://arstechnica.com/information-technology/2016/02/soundcloud-has-lost-over-70m-in-2-years-board-cites-material-uncertainties/

https://www.digitalmusicnews.com/2018/04/13/soundcloud-2016-financials/

Does anyone have any idea what their fixed and variable operating costs might be?

They just got a loan from a couple of "boutique" banks for $170 million but they DO NOT appear to have a business plan that can turn their traffic into revenue. It's appears that the corporate suits there are very inept businessmen or something worse.

I would hate to see such a nice platform vanish and I can't understand how a site with more traffic that all but 110 website worldwide can't be turning huge profits. What am I missing?

SeanMichaels
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Joined: Mon Feb 11, 2019 4:17 pm

Re: The End of Soundcloud?

Postby SeanMichaels » Mon Feb 11, 2019 4:58 pm

The operating costs for a site as large as Soundcloud have to be staggering. I would have no idea where to begin with a guess.

That being said, I believe Soundcloud has had difficulty monetizing their traffic. Since the platform used to be completely free (from what I can remember), converting existing users to Pro has proven to be very difficult. I feel like the membership is targeted mostly at artists, rather than individual music consumers.

They have a subscription plan that is for "pro" users, allowing more upload time and the ability to spotlight certain music tracks. In addition, there's a Go+ plan that disables ads on the platform for the regular music consumer. I doubt the majority of users have a subscription level account.

This is similar to Spotify's premium plan, giving you access to all major artist's music in addition to undiscovered music Soundcloud is known for. This to me is their downfall. Why would someone want to use Soundcloud's premium service to listen to what I'd consider "mainstream" acts when they most likely already have a Spotify or Apple music account.

In all the time I've used SC, I haven't experienced an ad before music. Maybe I just haven't used it enough. My guess is they aren't monetizing the website as well as they could be.

dannyrichardson
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Joined: Mon Feb 11, 2019 9:31 pm

Re: The End of Soundcloud?

Postby dannyrichardson » Tue Feb 12, 2019 9:08 am

I am shocked that Soundcloud didn't do what Spotify for their free members. If they would monetize by running ads that would be making an insane amount of money.

That platform is so large now because it's heavily dominated by urban music. Urban music being so popular is driving them an insane amount of traffic that they need to figure out how to monetize in a better way.

dannyrichardson
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Joined: Mon Feb 11, 2019 9:31 pm

Re: The End of Soundcloud?

Postby dannyrichardson » Tue Feb 12, 2019 9:09 am

Totally didn't see the post above mine. SeanMichaels hit it on the head pretty well I believe.

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Ian Craig
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Re: The End of Soundcloud?

Postby Ian Craig » Fri Feb 22, 2019 10:39 pm

A lot of U.S. users have stopped using Soundcloud due to the changes in their U.S. user agreements (not applicable elsewhere). Apparently people are expected to agree to U.S. government trawling their information or something (I can't really recall - I live in the U.K.). A lot of people have opted out.
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TheHound
Posts: 127
Joined: Sun Apr 24, 2016 10:26 pm

Re: The End of Soundcloud?

Postby TheHound » Sun Feb 24, 2019 2:18 am

SeanMichaels wrote:The operating costs for a site as large as Soundcloud have to be staggering. I would have no idea where to begin with a guess.

That being said, I believe Soundcloud has had difficulty monetizing their traffic. Since the platform used to be completely free (from what I can remember), converting existing users to Pro has proven to be very difficult. I feel like the membership is targeted mostly at artists, rather than individual music consumers.

They have a subscription plan that is for "pro" users, allowing more upload time and the ability to spotlight certain music tracks. In addition, there's a Go+ plan that disables ads on the platform for the regular music consumer. I doubt the majority of users have a subscription level account.

This is similar to Spotify's premium plan, giving you access to all major artist's music in addition to undiscovered music Soundcloud is known for. This to me is their downfall. Why would someone want to use Soundcloud's premium service to listen to what I'd consider "mainstream" acts when they most likely already have a Spotify or Apple music account.

In all the time I've used SC, I haven't experienced an ad before music. Maybe I just haven't used it enough. My guess is they aren't monetizing the website as well as they could be.


I contacted them to discuss a business plan and ways to tweak the platform for better monetization and they never got back to me. They don't care. They are using their Page Rank numbers to get loans from gullible "boutique" banks.

The streaming sites are pretty much thieves IMO. Their business model is poor IMO. No creative thinking.

starise
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Re: The End of Soundcloud?

Postby starise » Wed Aug 21, 2019 10:21 am

Soundcloud was once a very welcoming place. I made a few friends on there. I have a bunch of tracks up. After a revisit I realized I need to tweak a bunch of it since I'm not particularly happy with my offerings. I pay for the middle tier account and I have pretty much maxed out my tracks limit. I don't intend to pay for the highest tier. I use it as a kind of repository for music. At around 50.00 a year it's probably an expensive repository.

I guess I don't really have a pro or con view of SC. A few of my friends really took off on it with popularity though I doubt that it ever really mean't anything in terms of sales, at least on SC. It didn't help that I change genre on my account back and forth. I probably confused what small listening base I already had. A bunch of it was experimentation made public.
You can meet fellow musicians on it to collaborate since it has message capabilities. For those who are serioulty considering making their material into an album to sell I wouldn't post it on SC. Instead market through CD Baby or similar.

If you just want people to occasionally listen to your music for free, then by all means, go for it. Not exactly a huge draw if you spent lots of time in playing mixing and mastering to throw it all out there like bread on the water lol. That's exactly what I've done though and I have very little to show for it other than it being a nice place to store ideas.
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https://soundcloud.com/starise


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