Listen up, girls and boys! Class is in session. This week we
talk about Soundcloud. My past 2 posts have talked about some concepts and
results of online music promotion however I decided it would be a good idea to
outline one of the .com companies that shaped how musicians put their sound out
in the 21st century.
So, let’s do a rewind back to Stockholm, 2007. Two
engineering students, Eric Wahlforss and Alexander Ljung, had found a void in
the online space that needed filled. Both had a background in music with Ljung
writing scores for films and Wahlforss releasing an electronic album and
through their experiences in music they had discovered that there was no
simple, straightforward way for a piece of audio to travel between two points
and then to any number of recipients. At the time, this type of media sharing
was already established for other mediums with Flickr being for pictures and
Vimeo being for video but not for music.
In 2008, Ljung and Wahlforss set up Soundcloud.com in Berlin
to fill this gap. Soundcloud allows users to upload any piece of audio they
want onto their own personal profile. Users can then create “tags” on their
songs in order to make it easier for people to find their music through the
search bar using key words such as Remix, Bass, Live etc. Soundcloud also
provides statistics for users to see how many times their songs were listened
to in total and within the week. A stream acts as your front page as you open
Soundcloud which highlights any new songs that have been released or reposted
by the artists you are following. This includes your own posts as well.
Soundcloud’s free accounts allow up to 120 minutes of audio space however if
you upgrade to one of its subscription services you are then allowed unlimited
upload time as well as access to other statistics that the site provides.
Now some of you may be thinking “But what about Myspace?”
Hush, my little lamb. You aren’t wrong with bringing up
Myspace since it was dominating the scene in 2007 and had the ability to upload
audio files however the main difference between Myspace and Soundcloud was that
Myspace was designed for the artist and not for the audio. Myspace was social
media and Soundcloud is audio sharing.
Since setting up in Berlin in 2008, Soundcloud had
successfully targeted the niche market of audio creators that they wanted to
set up the platform for and due to hitting this niche, Soundcloud had bounced
out into other markets that were looking for an online audio platform. Starting
out with an aim to hit thousands of semi-pro audio producers, Soundcloud to
date has 175 million users that range from podcast creators, kids in bedrooms
with too much free time, chart topping artists and white house representatives.
It’s safe to say that Soundcloud has successfully earned
both its corporate and user value over the years. It is considered “the YouTube
of music” and was valued at up to $1Billion. However, times are tough for the
Berlin based business. In 2015 Soundcloud’s losses grew larger than its
revenues with a $22m dollar intake and a $52m haemorrhage. In 2014, Twitter was
working its way towards a $1billion acquisition of Soundcloud however backed
out due to a myriad of reasons including the head ache inducing copyright issue
that Soundcloud was still discussing with massive music labels such as Sony,
Universal and Warner.
In 2016, Spotify also were in talks of buying Soundcloud
however decided to pull out as well. Currently, there are rumours floating about
that Google is looking towards purchasing Soundcloud for $500m.
No matter what happens, Soundcloud is currently still losing
money and is at risk of running out of funds by December 2017 if nothing is
changed. What this means for artists and listeners is that they are losing the
biggest and most personal audio sharing platform that the net has to offer. All
those obscure remixes, hundreds of Soundcloud exclusive podcasts, and personally
created playlists will return to that void which Ljung and Wahlforss had
filled.
Soundcloud provided a platform when there wasn’t one and soon
enough that platform might just disappear just like everyone’s best friend Tom.
However, it will forever be known as the “YouTube of Music”.
Until next time, stay tuned.