One source said Ljung
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One source said Ljung
explained that SoundCloud is not a giant streaming company and didn’t want to directly compete with the $9.99 plans like Spotify. Our other source said “the plan is to concentrate on the content where they don’t have to pay our part of the money to the labels Cloud Provider.”
Like other streaming services, SoundCloud has to pay a huge percentage of revenue it earns off Go+ premium songs to the record labels. Spotify pays out around 70 percent, for example. Its margin is much better on the user-generated music uploaded to its service. Only a small percentage of creators is eligible for ad and subscription revenue share payouts from SoundCloud, and it pays them a much smaller cut than it does to labels for premium music .
Even at half the price of Go+, the higher-margin Go tier subscriptions could earn SoundCloud sizable revenue.
This plan has a chicken-and-egg problem, though. SoundCloud needs enough subscribers and ad listeners so payouts are high enough to lure the best artists who aren’t on major labels. But it needs the best artists’ content in order to seduce those listeners. Meanwhile, its free tier works fine for most occasional listeners, so beyond synced downloads and skipping a few ads, there’s not much reason to upgrade to $4.99 per month Study Tour.
And the recent layoffs make everything tougher. Our sources say there were deep cuts to the revenue/monetization and creator relations teams. Beyond closing the San Francisco and London offices, there were significant layoffs in the New York office. The planned rollout of SoundCloud Go subscriptions in South America may be delayed, though some staffers are unsure it will happen at all.
Royalty distribution platforms like Dubset threaten to make some of SoundCloud’s most unique content like remixes and DJ mixes available on Spotify and Apple Music. Those services have continued to rapidly grow thanks to sleek and frequent redesigns while SoundCloud’s clunky interface falters. “Even at SoundCloud, people secretly listen to Spotify because it’s easier,” one employee said.
Can the internet’s record collection be saved?
Like other streaming services, SoundCloud has to pay a huge percentage of revenue it earns off Go+ premium songs to the record labels. Spotify pays out around 70 percent, for example. Its margin is much better on the user-generated music uploaded to its service. Only a small percentage of creators is eligible for ad and subscription revenue share payouts from SoundCloud, and it pays them a much smaller cut than it does to labels for premium music .
Even at half the price of Go+, the higher-margin Go tier subscriptions could earn SoundCloud sizable revenue.
This plan has a chicken-and-egg problem, though. SoundCloud needs enough subscribers and ad listeners so payouts are high enough to lure the best artists who aren’t on major labels. But it needs the best artists’ content in order to seduce those listeners. Meanwhile, its free tier works fine for most occasional listeners, so beyond synced downloads and skipping a few ads, there’s not much reason to upgrade to $4.99 per month Study Tour.
And the recent layoffs make everything tougher. Our sources say there were deep cuts to the revenue/monetization and creator relations teams. Beyond closing the San Francisco and London offices, there were significant layoffs in the New York office. The planned rollout of SoundCloud Go subscriptions in South America may be delayed, though some staffers are unsure it will happen at all.
Royalty distribution platforms like Dubset threaten to make some of SoundCloud’s most unique content like remixes and DJ mixes available on Spotify and Apple Music. Those services have continued to rapidly grow thanks to sleek and frequent redesigns while SoundCloud’s clunky interface falters. “Even at SoundCloud, people secretly listen to Spotify because it’s easier,” one employee said.
Can the internet’s record collection be saved?
PR