Audio self-publishing service SoundCloud is at the centre of a rumour frenzy after reports surfaced that it has been struggling to raise the $100 million it needs to survive.
Investors value the brand in the region of $700 million – a $70 million cash injection from Twitter last year pegs it at the same amount – however the team will apparently listen to offers which exceed the total amount investment raised to date; a mere $250 million.
Although the economics of the business are murky for the moment, the brand does offer potential for organizations which want to play in the content arena. The team state SoundCloud has 175 million monthly unique users, though this number hasn’t been updated since 2014.
Read Article: Telecoms.com
Undercutting rival Spotify and others in the industry, SoundCloud is offering consumers music for $4.99 a month. This price is 50% lower than what Spotify offers, according to Bloomberg News.
Yet with both SoundCloud and Spotify being in the red, some are insisting that the lower $4.99 charge could be key for SoundCloud and Spotify to attract more paying users and to make money.
Read Article: Investopedia
Another day, another industry-rattling potential buyout for the streaming music vertical. According to a report posted on the Financial Times website, Spotify is currently in talks to buy SoundCloud. While nothing has been confirmed by either company at this point, the mere prospect of such a combination of powerhouses is exciting, and the idea isn’t too far-fetched either.
In an exclusive interview with Swedish TV4 this weekend, Spotify’s founder Daniel Ek may have given a glimpse of what could be Spotify’s unofficial ten year plan. And when reading between the lines, it seems like Spotify is about to copy or even buy Soundcloud, at least if we believe the analysis of DiDigital’s Sven Carlsson.
Source: Business Insider Nordic
SoundCloud is adding video ads, the latest service to roll out the commercial format. Often referred to as the “YouTube for audio,” SoundCloud said Tuesday it is debuting video advertising across its mobile apps in the United States. The ads, which can be either horizontal or vertical format, will pop up between tracks when your screen is on and the SoundCloud app is actively engaged in the foreground. In other words, you’ll see video ads when you’re actually using it, not when SoundCloud is playing in your pocket.
The streaming music bubble may be ready to burst—and SoundCloud could be the needle that pops it. The German-based music company finally released its long-awaited streaming service, known as SoundCloud Go.
Until recently, Soundcloud was primarily known as a site that artists and amateur musicians post original work, as well as remixes and mashups of their songs (often less than legally). Bloomberg once called the service the “YouTube of audio tracks, thanks to a huge library of free, exclusive remixes, b-sides, and DJ sets that pulled in far more listeners than Spotify, Apple Music, or Pandora.”
Entering a crowded market, Soundcloud is emerging at a time when the industry has reached “too big to fail” status: In 2015, the digital music business was a nearly $6.9 billion empire, and streaming brought in 32 percent of that total. That’s a 28 percent increase from the previous year. If that trend continues, the streaming business will account for more than half of all industry revenue in two years.
Source: Daily Dot
With licensing deals in place, the popular streaming service is fully legit and expected to launch a subscription option soon. But can it stand out in a crowded field?