SoundCloud Going Down?

Motterpaul

Tone is in the Ears
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"SoundCloud’s losses grew faster than its revenues in 2015 – with the company now admitting that, should its subscription service flop, its funding may run dry this year. They lost $51-million this year, and can't seem to make a go of it."

full article: http://www.musicbusinessworldwide.c...-out-of-cash-this-year-as-it-posts-e51m-loss/

A few years ago I created a thread here arguing against free music on the Internet and Copyright violators - one of the biggest being YouTube. I proposed getting rid of compressed file formats making it too easy to share low quality recordings. I encouraged a recording industry that only supported new formats that only play on high quality equipment - not over the Internet.

It can be done - some artists (Beatles, Joe Bonnamassa) have largely been able to control what music gets released on the web and what does not.

I was castigated by a millennial who called me vile names (stupid, old fart) and insisted "recorded music wants to be free and musicians learn to need new ways to make money from creating music." The guy pissed me off so much he got me banned.
 

bgmacaw

Member
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8,075
"SoundCloud’s losses grew faster than its revenues in 2015 – with the company now admitting that, should its subscription service flop, its funding may run dry this year. They lost $51-million this year, and can't seem to make a go of it."

Sounds like they have typical tech company burn rate. They're big enough that they'll find someone to throw more money at them, perhaps Google.
 

tiktok

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25,078
Has there ever been a self-supporting online music platform? As in, one that operated in the black?
 

Motterpaul

Tone is in the Ears
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13,943
The money was left in a bank bag in the secretary's trunk. She planned to make the deposit on Monday.

Actually, Google is said to be looking at them, but they have YouTube. I know a lot of musicians now post original songs to YouTube, so it would be the main beneficiary if Soundcloud does go under. I just thinks it is a fircking shame that recording music has become all but a losing proposition (monetarily) these days.
 

Motterpaul

Tone is in the Ears
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13,943
Has there ever been a self-supporting online music platform? As in, one that operated in the black?

I am thinking iTunes has done pretty well - because Apple people believe they should own a phone where everything must be done through iTunes.
 

tiktok

Silver Supporting Member
Messages
25,078
The money was left in a bank bag in the secretary's trunk. She planned to make the deposit on Monday.

Actually, Google is said to be looking at them, but they have YouTube. I know a lot of musicians now post original songs to YouTube, so it would be the main beneficiary if Soundcloud does go under. I just thinks it is a fircking shame that recording music has become all but a losing proposition (monetarily) these days.

Any industry whose product can be reduced to small, simple files, is doomed. God forbid the product starts off as small, simple files, such as music or images.
 

tiktok

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25,078
I am thinking iTunes has done pretty well - because Apple people believe they should own a phone were everything that can be done with it needs to be done through iTunes.

iTunes was always designed as break-even proposition whose main purpose was to encourage the purchase of Apple hardware and get people into the Apple ecosystem--an iPod, a matching iPhone, the Mac OS, etc. Without the support of Apple's other wildly profitable products, I'm sure it would fold. Because hosting is expensive, and people hate paying for things.

SC made the same mistake that pretty much everyone did: offering a pretty usable free option. The free-riders always greatly outweighed the subscribers. iTunes never had a free option, and Apple Music only gives you a three month option after you've provided a CC# tied to an Apple account. Everyone that offered free music hosting or streaming has lost a fortune.
 

smokermaker

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8,568
They made it where you can't embed your files on Facebook, and if your friends want to listen, they have to download the app first. People are jumping to reverbnation in droves.
 

Blanket Jackson

Everything is temporary anyway
Gold Supporting Member
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17,329
I was castigated by a millennial who called me vile names (stupid, old fart) and insisted "recorded music wants to be free and musicians learn to need new ways to make money from creating music." The guy pissed me off so much he got me banned.
Don't really want to derail the thread, and hopefully I don't, but you are saying that you got banned from TGP a while back and now you are back under (presumably) a different name?
Full disclosure - I am not the said millennial
 

micycle

Member
Messages
4,058
I always wondered why they didn't shove more advertising down user's throats (unless my ad blockers are doing a really good job). I'm all for lack of ads but it seems like they could have made more money in that arena. I sure get a lot of spam on there - in fact I can't remember the last legit message I received via SC.
 

phil_m

Trying is the first step towards failure.
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14,623
I use Soundcloud to host some songs and clips and that, but beyond that, I'm not sure why anyone would use it as a music streaming service. The interface generally sucks, and their app is pretty archaic compared to Spotify and Apple Music. I guess their main selling point for the paid service was that they would offer all sorts of remixes or other exclusive tracks, but I don't think such things mean much to the average listener nowadays.
 

tiktok

Silver Supporting Member
Messages
25,078
They made it where you can't embed your files on Facebook, and if your friends want to listen, they have to download the app first. People are jumping to reverbnation in droves.

Ugh, ReverbNation has it's own limitations--pushing people to their clumsy website, limitations on tracks, length, cumbersome UI, etc. It also offers more for nothing (image hosting, a calendar, mailing, etc) to bands, so I predict it'll be going under any day now, just like mp3.com, myspace, etc.
 

Jim Soloway

Member
Messages
15,286
I really doesn't seem like streaming in it's current incarnation works as a business model. Maybe when their down to only one or two but right now it feel an awful lot like the portal business in the mid 90's ... just a way to separate investors from their cash. Maybe it will work when there's only one or two left standing but even then I have my doubts.
 

thecornman

Member
Messages
2,428
As one of the few people out there that still buys hard copies of the music I listen to I could really care less if all the free streaming online shuts down. Music is a big part of my life and is worth paying for IMO. The artists that are producing the music that brings joy to my life deserve to be paid for it. Sure glad that music is not the career path I choose to take, because everyone seems to feel that it is job that should be done for free.
 

tiktok

Silver Supporting Member
Messages
25,078
I really doesn't seem like streaming in it's current incarnation works as a business model. Maybe when their down to only one or two but right now it feel an awful lot like the portal business in the mid 90's ... just a way to separate investors from their cash. Maybe it will work when there's only one or two left standing but even then I have my doubts.

As long as YouTube exists, no streaming service will be profitable.
 

FPFL

Member
Messages
3,316
"

A few years ago I created a thread here arguing against free music on the Internet and Copyright violators - one of the biggest being YouTube. I proposed getting rid of compressed file formats making it too easy to share low quality recordings. I encouraged a recording industry that only supported new formats that only play on high quality equipment - not over the Internet.

This is basically what Neil Young and Co.'s Pono player and music store is about. Its an abysmal failure IMHO but someone tried it.
You can't "get rid of compressed file formats" though. Formats have and will exist whether people and companies like them or not. The only way to win is to make something people want more but that won't come from restricting choice.

Some post the collapse of the industry artists do well enough only selling direct on their site. Even then they sell in high and low quality non-DRM formats b/c people won't deal with DRM for music anymore, nor should they.

I think the numbers on streaming will work out over time, the revenue trend is growth not flat, but I would also like to see YouTube pay more per play. I think their agreement is obviously unfair to creators but don't wait up late for new ethics from Google, they'll leave you waiting. "Do no evil" my butt.

Be well,

Paul
 

tiktok

Silver Supporting Member
Messages
25,078
This is basically what Neil Young and Co.'s Pono player and music store is about. Its an abysmal failure IMHO but someone tried it.
You can't "get rid of compressed file formats" though. Formats have and will exist whether people and companies like them or not. The only way to win is to make something people want more but that won't come from restricting choice.

Some post the collapse of the industry artists do well enough only selling direct on their site. Even then they sell in high and low quality non-DRM formats b/c people won't deal with DRM for music anymore, nor should they.

I think the numbers on streaming will work out over time, the revenue trend is growth not flat, but I would also like to see YouTube pay more per play. I think their agreement is obviously unfair to creators but don't wait up late for new ethics from Google, they'll leave you waiting. "Do no evil" my butt.

Be well,

Paul

While the revenue trend may be growth, it's the profit trend that matters.

Meanwhile:

“Employees of Alphabet and its subsidiaries and controlled affiliates should do the right thing—follow the law, act honorably, and treat each other with respect,” the new code reads, noticeably dropping the famous motto.

Alphabet, which took over as Google’s new holding company on Friday, has dropped the tech giant’s “Don’t Be Evil” mantra from its code of conduct.
 




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