SoundCloud was once a platform beloved by listeners and creators, whose leaders hoped to revolutionize the music industry. Hamstrung by management mistakes and fierce competition, they never did. Here's the story of how it all came crashing down.
Starting in August 2007, the audio streaming software SoundCloud was designed to be a place for musicians to collaborate by sharing and discussing recordings. However, the website quickly became a place for artists to publish music for other users. The defining characteristic of SoundCloud that has made it so popular for aspiring musicians is that it is largely free to post and listen to music, something that sophomore Thomas Melcher, who posts beats to SoundCloud, said he appreciates.
“I like SoundCloud because it’s free, and it’s a great platform for people who don’t have prior connections to get themselves out there,” Melcher said. “It’s also free to listen to, and you can find a lot of new stuff that you don’t usually see in the mainstream like Spotify or iTunes.”
Former SoundCloud employees familiar with the Sir Bizzle incident point to it as an encapsulation of the company’s promise missed opportunities, and inability to coherently work with the entrenched music industry. Three years after Bieber’s selfie, SoundCloud has squandered its position as a maverick, but the beloved audio platform and failed to build a meaningful business.
In a music era dominated by Spotify, SoundCloud has been, at the best of times, a startup in stagnation, and, at the worst of times, an organization in disarray. Once harboring aspirations to be the YouTube of sound, the Berlin-based company has struggled to remain viable, hamstrung by management missteps, an ineffective business strategy, and a stubborn music industry that would rather it had never existed.
Reports started to appear online on July 5 that said SoundCloud was about to cut its 420-strong workforce by 40%. Bloomberg had read a draft blog post in which SoundCloud CEO Alex Ljung explained that the company was letting go of 173 staff, and shutting down its offices in London and San Francisco (leaving only offices in New York City and Berlin) as part of an effort to reduce costs at the company whose losses have been spiralling out of control.
SoundCloud was constantly battling with the major music labels
In May 2015, Sony Music pulled music by several key artists from SoundCloud after the label decided it wasn't making enough money from music hosted on the streaming site. Original recordings from Sony artists like Adele, Kelly Clarkson, Miguel, and Hozier were removed. They were later added again after SoundCloud negotiated a new deal with Sony Music.
In August 2015, SoundCloud was sued for not paying musicians royalties. In an email sent to its members, the Performing Rights Society for Music (PRS for Music) announced that it felt it has “no alternative but to commence legal proceedings,” following “five years of unsuccessful negotiations.”
By November 2015, loyal SoundCloud users were starting to lose faith in the site as it shifted from a hangout for DJs and radio hosts to a commercial platform. Users said the music streaming app and website had strayed from its earlier focus on supporting DJs and felt that it was unfairly removing content and focusing on high-profile users and licensed music.
Spotify vs Soundcloud
Spotify vs Soundcloud, a hot debate in 2021 for audiophiles and brands around the globe – well, not anymore. We’re here to settle this debate once and for all!
As two massive streaming platforms, Spotify and Soundcloud both have their advantages and disadvantages. What’s more, they both fill two completely separate niches; Spotify provides a curated, expansive music streaming service for casual listeners and music fanatics alike. Soundcloud, on the other hand, is a drastically different platform, well-known for allowing startup artists and rappers to get a foot in the door.
How it can help you to get one stop Music Emporium?
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A key feature of SoundCloud is to upload their music with a distinctive URL, which allows sound files to be embedded anywhere, SoundCloud can be combined with Twitter and Facebook to users. When a social sound platform is co-ordination with the social networking site, makes lip-smacking ambience. The more users being attracted towards the SoundCloud clone, more benefits can be derived.
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