SoundCloud

SoundCloud
source
Name	SoundCloud
Type	Music streaming service
Founded	August 2007
Founders	Alexander Ljung, Eric Wahlforss
Headquarters	Berlin, Germany

SoundCloud is a popular online audio distribution platform and music sharing website that allows users to upload, share, and stream audio files, including music, podcasts, and other sounds, with Spotify, Apple Music, and Tidal being some of its main competitors. Founded in 2007 by Alexander Ljung and Eric Wahlforss, SoundCloud has become a major platform for emerging and established artists, such as Kanye West, Lady Gaga, and Drake, to share their music with a global audience, including fans in New York City, Los Angeles, and London. SoundCloud has also been used by popular podcasters like Joe Rogan, Tim Ferriss, and Gary Vaynerchuk to host their shows, which are often recorded in studios in Chicago, Miami, and San Francisco. With its user-friendly interface and vast music library, SoundCloud has become a go-to platform for music lovers, including those in Paris, Tokyo, and Sydney, who want to discover new artists and genres, such as Hip-Hop, Electronic Dance Music, and Indie Rock.

History

SoundCloud was founded in August 2007 by Alexander Ljung and Eric Wahlforss, two Swedish sound designers who wanted to create a platform for musicians to share their music and collaborate with others, similar to MySpace and Facebook. The company was initially based in Stockholm, Sweden, but later moved its headquarters to Berlin, Germany in 2010, where it joined other successful startups like Rocket Internet and Zalando. In 2011, SoundCloud raised $10 million in funding from investors like Union Square Ventures and Index Ventures, which helped the company expand its user base and improve its features, including the introduction of a new player designed by Flickr co-founder Stewart Butterfield. By 2012, SoundCloud had become one of the most popular music streaming platforms, with over 10 million registered users, including artists like Taylor Swift, Justin Bieber, and Rihanna, who used the platform to share their music with fans in Australia, Canada, and the United Kingdom.

Features and services

SoundCloud offers a range of features and services that make it a popular platform for musicians and music lovers, including SoundCloud Pro, which provides additional features like advanced analytics and monetization options, similar to YouTube Premium and Spotify for Artists. Users can upload their own music and audio files, and share them with others through Twitter, Facebook, and other social media platforms, including Instagram and TikTok. SoundCloud also has a vast music library, with over 200 million tracks available for streaming, including music from popular labels like Universal Music Group, Sony Music Entertainment, and Warner Music Group. In addition, SoundCloud offers a range of discovery features, such as SoundCloud Charts and SoundCloud Radio, which help users discover new music and artists, including those from Nashville, Austin, and New Orleans.

Business model and financial performance

SoundCloud's business model is based on a freemium model, where users can sign up for a free account and upgrade to a paid subscription for additional features, similar to Dropbox and LinkedIn. The company generates revenue through advertising, premium subscriptions, and licensing fees from music labels and publishers, including ASCAP and BMI. In 2019, SoundCloud reported revenue of $200 million, with a net loss of $120 million, which was a significant improvement from the previous year, thanks to the growth of its premium subscription service, SoundCloud Go, which competes with Apple Music and Spotify Premium. SoundCloud has also partnered with major music labels and publishers, including Warner Music Group and Sony/ATV Music Publishing, to offer a wide range of music to its users, including those in China, India, and Brazil.

Impact on the music industry

SoundCloud has had a significant impact on the music industry, providing a platform for emerging artists to share their music and gain exposure, similar to Bandcamp and ReverbNation. The platform has also changed the way music is consumed, with users able to stream music on-demand and discover new artists and genres, including Electronic Dance Music and Hip-Hop, which have become popular in Ibiza, Las Vegas, and Miami. SoundCloud has also been credited with helping to launch the careers of artists like Lorde, Halsey, and Billie Eilish, who used the platform to share their music and build a following, including fans in Los Angeles, New York City, and London. Additionally, SoundCloud has partnered with music industry organizations like Grammy Awards and Music Business Association to support emerging artists and promote music education, including programs in Nashville, Austin, and New Orleans.

Controversies and legal issues

SoundCloud has faced several controversies and legal issues over the years, including copyright infringement claims from music labels and publishers, similar to YouTube and Vimeo. In 2016, SoundCloud was sued by Sony Music Entertainment and Universal Music Group for copyright infringement, which led to the company signing licensing agreements with the labels, including Warner Music Group and EMI Music Publishing. SoundCloud has also faced criticism for its handling of royalties and payments to artists, with some artists claiming that they are not being fairly compensated for their work, including Kendrick Lamar and Taylor Swift, who have spoken out about the issue. Additionally, SoundCloud has been involved in disputes with Twitch and YouTube over music licensing and copyright issues, including a lawsuit filed by Pharrell Williams and Robin Thicke over the song Blurred Lines. Despite these challenges, SoundCloud remains a popular platform for music lovers and artists, including those in Paris, Tokyo, and Sydney, who use the platform to discover new music and connect with fans. Category:Music streaming services