News has started to circulate that SoundCloud is sliding back towards bankruptcy. According to a recent article over at digital.di.se, the platform is still struggling to increase revenues at a healthy rate–- with the talk of turning a profit not even close to being a part of the conversation. Nothing has been confirmed so far, but if financial struggles are real for the platform should producers start thinking about the next platform?
We just recently posted an article celebrating SoundCloud’s (unofficial) announcement which “legalized” producer remixes on the platform without fear of reprisal. This was fantastic news that spread like wildfire and really pushed the platform back up on the list for up-and-coming artists to share their music. This news, along with the rollout of SoundCloud Go (their recent paid streaming service) was supposed to breathe life back into the platform and jump-start revenues for hungry investors.
That said, it’s not uncommon for startups and companies with outside money to be running in the red. Facebook for example, took two years to start bring in revenue, and 5 years to make a penny of actual profit. This probably isn’t surprising to investors – but they are likely very unhappy at the current trajectory.
So what does this mean for producers and musicians? It might be time to start looking for other platforms to house your music just incase of any possible turbulence with the platform until things get sorted out. There’s no need for an exodus at this moment, but it couldn’t hurt to keep an eye out for greener pastures. Will SoundCloud go away? Not any time in the near future. The company is a badge of honor for Sweden, and I’m sure they’ll do everything they can to help the platform. Additionally, they are sitting on a datapile of over 175 million monthly users. For digital advertisers that is an absolute goldmine. If another streaming/music/audio platform doesn’t decide to scoop SoundCloud up at a firesale price, you can bet a digital advertising tech giant will swoop in to pick the bones.
It’s really not as far-fetched as it sounds; it’s rumored that Google has interest in the platform (for the right price of course).
We’ll provide updates as we hear more.