russell Posted October 13, 2014 Posted October 13, 2014 SoundCloud operated at a loss of £18.1m in 2013.The music streaming platform is hugely popular among fans and artists, boasting some 175m users per month. But despite it being the go-to site for uploading tracks and mixes, an annual report from '13 showed SoundCloud creating an annual turnover of £8.8m compared to operational losses of double that.A statement from the company said: "We are in a phase of growing SoundCloud into the market-leading platform for listening to, creating and sharing sound. This has necessitated investment in technology, headcount and marketing. Our overhead base has increased faster than our revenues.”Though its turnover is up from 2012, so are its operational losses. This is probably because the company has had to keep up with its rapid user expansion.This news comes after SoundCloud announced plans for paid subscription and advertising with labels and large brands, something that should close the gap between turnover and losses in the future.With international offices from San Francisco to Berlin, founders Alex Ljung and Eric Wahlforss had wanted the website to imitate the success for audio to what YouTube did for video.Despite this accounted loss and continued negotiation, SoundCloud's listening figures are expected to reach up to 200 million per month in the near future.Source Quote
Cupe Posted October 13, 2014 Posted October 13, 2014 I literally cancelled my Pro account yesterday.It's all my fault Quote
Narukami Posted October 13, 2014 Posted October 13, 2014 I literally cancelled my Pro account yesterday.It's all my fault Quote
russell Posted October 13, 2014 Author Posted October 13, 2014 I literally cancelled my Pro account yesterday.It's all my fault I haven't had my pro account for a while now and barely use the site anymore. Quote
LabRat Posted October 13, 2014 Posted October 13, 2014 I didn't renew my account. What's the point when they take your shit down Quote
Cupe Posted October 13, 2014 Posted October 13, 2014 I want the world to hear my sounds, but not for $16/month Quote
Kodiak Posted October 14, 2014 Posted October 14, 2014 But the article is talking about 2013 when it wasn't shit. Quote
Cupe Posted October 14, 2014 Posted October 14, 2014 What in your opinion has made is shit since last year compared to now? Quote
Kodiak Posted October 14, 2014 Posted October 14, 2014 What in your opinion has made is shit since last year compared to now?They weren't as vigilant with the take downs. If you tunes made it through the initial check you were right. Recently they have gone back through and old stuff is no longer safe. Quote
Kodiak Posted October 14, 2014 Posted October 14, 2014 I do understand these are not of their doing though. They are doing great what they are forced to do. Quote
eggssell Posted October 14, 2014 Posted October 14, 2014 well actually its not that they are doing anything worse. in fact their revenues have grown.their overhead base (costs) grow at a larger rate hence increasing the amount of losses in 2013 compared to prior years.the company has said that it is in a new growth phase, which for a company is usual to reduce your operating margin (and for new companies to be in a loss position).of course if you never break this then you cant be successful.this is common in the "cloud" world right now, where you are trying to offer a service at super low prices. however to do this you are incurring costs to get as many customers as possible. as that is the only way high volume low price businesses can work.look at xero which all business analysts get hard ons over. their losses have continued to grow year on year (i think once they went flat) and are now at $100M accumulated losses. but it still doesnt seem to bother all the praise they get(personally i dont get it...) Quote
Cupe Posted October 14, 2014 Posted October 14, 2014 Yea the point I was trying to make is you can't call a service shit for staying within the boundaries of what law requires. Quote
BeatLeSS Posted October 14, 2014 Posted October 14, 2014 They need to become the next bandcamp where they can offer underground/unsigned/non-huge artists the ability to sell their music to fans that are listening to it on the spot and take a small percentage platform fee. I reckon something like artists name their price, then a set percentage gets shaved off that price for soundcloud to provide the platform. They've already got the people using it, integrating something like this should be simple.This would also be a great step in the future of the music industry. Next we need to abolish this crappy copywright/sampling laws - we'll never progress with the way it is. Quote
Cupe Posted October 14, 2014 Posted October 14, 2014 But if that was implemented you'd be edging out the beloved record labels. Quote
BeatLeSS Posted October 14, 2014 Posted October 14, 2014 But if that was implemented you'd be edging out the beloved record labels.What you mean those companies that everyone whinges about ripping off the artists and working them to the bone for a pittance? Quote
Cupe Posted October 15, 2014 Posted October 15, 2014 I was being facetious m8And the smaller labels can setup their own soundcloud and get moola anyway.Seems like a smart idea. fuck the man Quote
BeatLeSS Posted October 15, 2014 Posted October 15, 2014 It seems to be the next step of progression in terms of content delivery. IMO they'd be silly not to do something like this, having such an established user base already. Quote
russell Posted October 15, 2014 Author Posted October 15, 2014 could always just use bandcamp..... Quote
BeatLeSS Posted October 15, 2014 Posted October 15, 2014 could always just use bandcamp..... I do for a lot of my music. The underground scene pretty much thrives on it.But, with a platform like soundcloud already bringing in so many hits, it makes sense to offer something similar. Quote
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