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The End of Soundcloud?

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TheHound
Posts: 104
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
Posts: 5
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
Posts: 6
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
Posts: 6
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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