Music streaming platforms like Spotify, Apple Music, TIDAL, etc many others are currently at the top of the industry with numerous artists participating in these platforms to create successful music careers. However, nothing can beat the influence of SoundCloud which has offered some of the best artists in the industry. Starting from rappers, pop singers, DJs, and music producers; the platform has offered and helped the industry discover some of the best talents around the world through listeners and fans.
The company was founded back in 2007 with the creative vision of the founders namely, Alexander Ljung and Eric Wahlforss. It is one of the biggest and most popular music streaming platforms around the world which is used by the people of more than 190 countries and territories. The platform which currently has more than 76 million active monthly users has gone through a fair share of ups and downs when it comes to business. Starting from the financial crisis to downsizing the company for reduced revenue; the company has gotten over its days of turmoil and now, it is a launchpad for emerging music artists. Let’s find out more about this highly influential music platform and its comeback story in the music industry!
What happened with SoundCloud in 2017?
Back in 2017, SoundCloud was facing a hard time and was about the shutdown. It was revealed the company is running out its funding and will be shutting down in two months. Fortunately, the investment firms namely Raine Group and Temasek Holdings came in clutch with $170 million worth of investment in the company. Chance the Rapper also provided ample support for the platform which helped the company avoid its termination and running out of business.
It was not sure what was the primary cause of such a financial crisis when the company had already run its business for a decade but the fact was evident that SoundCloud did not have any contingency plan to deal with such a situation. When the news of SoundCloud shutting down was revealed, it was reported that the company had lost tens of millions of dollars and it could only survive for 50 more days with whatever financial power it had. The company also laid off its 40% of employees as well as closed its branches in San Francisco and London. It remained an independent company as it was struggling with a huge business plan.
In the constantly evolving digital world where more and more tech companies are emerging every year, SoundCloud made the mistake of only making a profit but the first goal should have been stability. The investors, Raine Group and Temasek are still asking for a $1 billion payday, but the company is not sold out. In the last decade, SoundCloud has made some significant musical contributions, especially in the hip-hop industry. And now, it is one of the most influential platforms where artists try to earn with their musical talent.
Why SoundCloud is so Important?
SoundCloud is a favorite of both, the listeners and the artists as well. Just like the platform has helped millions of listeners discover new artists and find their idols; it has also helped the music artists to find more relevant listeners or fans who helped to improve their musical careers. Grammy-nominated producer Dede Ademabua, aka IAMNOBODI said, “Might sound dramatic but it changed my life.” he further added, “Wouldn’t be where I am today if it wasn’t for SoundCloud. I was able to make a name for myself by uploading songs and DJ mixes that people all over the world connected with. I became a part of Soulection through this platform.”
This talented music producer has worked with many revered artists from the industry namely, Nipsey Hussle, Little Simz, Bryson Tiller, etc to name some. He said, “If anything, SoundCloud was about having fun and connecting with like-minded individuals globally.” A lot of other music artists, especially hip-hop artists would agree with him as SoundCloud has literally given birth to a new genre in rapping which is known as SoundCloud rap. A buzz in the hip-hop music industry was created back in 2015 when SoundCloud rap offered some of the best artists. Starting from XXXtentacion, Juice WRLD, Lil Peep, and Smokepurpp, to Playboi Carti, Trippie Redd, Suicideboys, Ski Mask the Slump God, and many others made their place at the top of the music industry.
SoundCloud rap brought a new creative wave in hip-hop with highly emotive, rebellious, drug-friendly bars that spoke about reality and emotions rather than showing off cars and chains. According to The New York Times, it was “the most vital and disruptive new movement in hip-hop.” Modern-day rappers like Travis Scott, Lil Uzi Vert, Lil Nas X, and many others have emerged from SoundCloud and it has now become a legacy where every year the platform introduces listeners to some of the most creative raw talents in hip-hop music. This groundbreaking genre made its place in the top charts and SoundCloud was trying to integrate more tools for success for the artists.
In 2020, rapper Travis Scott said to The Shop, “SoundCloud was there for us because SoundCloud understood, like, we wanna drop a song right now.” He further added, “We’re not trying to wait for any load-up. We wanna go right now. Our fans and then people adapted to our speed.” The support of the platform and the loving community is loud in every artist's voice. Artist and producer Bandela said, “The ability to comment on a song and see where that comment was placed within the song is still nowhere else, and it really makes the community feel alive and not just like some random numbers.” He further added, “I feel like SoundCloud and to an extent, Bandcamp are the only music streaming platforms that have a true sense of community.” Just like Bandela, many have started their musical journey with SoundCloud and after years of consistency, they have finally reached their goals of becoming a renowned professional musical artist.
Important Statistics and Insights on SoundCloud that Every Artist Should Know
• SoundCloud has more than 250 million tracks on the platform and the number is increasing every day. It has the most diverse and largest audio catalog among the major music platforms.
• The platform has received the most amount of web traffic in the USA in 2021.
• It has become the second most searched music streaming platform around the globe in 2020. This platform can generate up to 13.6 million searches on average every month.
• 27% of SoundCloud’s overall traffic comes from the US only whereas the United Kingdom provides around 6%. Germany, France, and Canada offer around 5%, 3%, and 3% traffic respectively. The rest of the traffic is worldwide which is generated by global listeners.
• Without the investment of $169.5 million in 2017, SoundCloud would have dissolved in the later years.
• The platform announced a huge donation of $15 million in April 2020, in order to help the music artists survive amidst the tough times of the COVID-19 pandemic.
• The was valued at more than $500 million in 2017 when it was about to shut down.
• In the last quarter of 2019, SoundCloud earned a total revenue of more than $200 million.
• The revenue of the company increased rapidly as it was up 37% year-on-year in 2019
• In 2016, the company earned a revenue of €24.87 million which increased to €81.33 million in 2017 and €107.96 million in the next year 2018. Evidently, the platform increased its revenue up to four times within a span of two years only. It was when the company was going through a struggling phase with the financial crisis.
• In 2019, $111.7 million was generated by SoundCloud’s global ‘Listener Business’. Similarly, its global ‘Creator Business’ could generate $54 million in the same year only.
• The advertising revenues were improved by 37.4% in 2018 and reached up to €24.8 million. It offered 23% of the total revenue.
• The US is the biggest consumer of SoundCloud Music as 69.6% of the total revenue is generated from the USA only. There is also 63.9% of global subscriptions and 88.8% of ad revenues according to their 2018 business year.
• The platform has also successfully reduced its annual operating losses, from €32.9 million to €23.8 million in 2019, which was a huge progress for the company.
• SoundCloud has also received a $75 million investment from SiriusXM Radio Inc. but did not speak of any contribution from Twitter although it claims to reportedly invest $70 million
• There are more than 25 million creators on SoundCloud along with more than 175 million active listeners
• More than half of the creators on the platform get the light of the media
• More than 80,000 artists are now capable of monetizing their musical content on this platform, allowing them to create a successful career ahead.
• The Youth love SoundCloud as 35% of SoundCloud’s audience base belongs to the age group of 18-35 years
• In 2021, this platform received the maximum number of site visits through both mobile and desktops which is around 164.28 million
• In Alexa, the global site rank for SoundCloud is 134 but for the USA, it is 95
• 12 hours of audio is being uploaded on the platform every minute.
Is SoundCloud a good place to start your music career?
Considering its epic comeback story, influence in the industry, and critical insights; the fact is evident that SoundCloud is currently one of the most influential music platforms around the world. With its precious contributions to the music industry, this platform has received more popularity and now, it is the launchpad for emerging artists. Though the platform welcomes all; there is a higher chance of gaining success for rappers and music producers as they have performed quite well. In the coming days, SoundCloud will be gaining more popularity among all, and its modern tools with integration makes it more accurate to survive in the digital landscape. Start your musical career on SoundCloud and see the change!
