SoundCloud
Audio streaming platform and music distribution service allowing users to upload, promote, and share audio content globally.
Company Type
private
Founded
2007
Headquarters
Berlin, Germany
About SoundCloud
SoundCloud operates as an audio streaming platform that allows users to upload, promote, and share audio content. The service serves both as a distribution platform for creators and a discovery platform for listeners.
Key features include:
- Audio upload and sharing for musicians and podcasters
- Streaming of user-generated content and official releases
- Social features including comments, likes, and reposts
- Monetization options through SoundCloud Go+ subscription
- Artist services through SoundCloud for Artists
- Fan-powered royalties system for fair artist compensation
- Integration with other platforms and social media
The platform offers both free and premium services. SoundCloud Go+ provides ad-free listening, offline playback, and access to full catalog content. The company has developed partnerships with major music labels and independent artists to ensure comprehensive content availability.
History of SoundCloud
SoundCloud was established in Berlin on August 27, 2007, by Alexander Ljung and Eric Wahlforss. The company's website launched on October 17, 2008, originally intended to allow musicians to collaborate by facilitating sharing and discussion of recordings.
The platform quickly evolved from a collaboration tool into a publishing tool for music distribution. By early 2009, SoundCloud had received €2.5 million in Series A funding from Doughty Hanson Technology Ventures. The company reached one million users by May 2010.
Growth accelerated rapidly: SoundCloud raised $10 million in Series B funding from Union Square Ventures and Index Ventures in January 2011, reaching 5 million users by June 2011 and 10 million by January 2012. The company secured investments from Ashton Kutcher and Guy Oseary's A-Grade Fund during this period.
By July 2013, SoundCloud had 40 million registered users with 20 million new users joining monthly. The company began licensing negotiations with major music companies in 2014 to address copyright concerns, raising $60 million in funding that resulted in a $700 million valuation.
Despite acquisition interest from Twitter in 2015 and Spotify in 2016, SoundCloud remained independent. The company faced challenges with music licensing but continued growing, reaching 200 million sound tracks by February 2019.
In May 2019, SoundCloud acquired artist distribution platform Repost Network. The company introduced "fan-powered royalties" in March 2021, a new pay model for artists that went into effect on April 1, 2021.
By December 2021, SoundCloud's CFO reported the company was "at the doorsteps of break-even" and expected to generate net profit by 2023. The rise of "SoundCloud Rap" and the platform's ability to help new artists gain popularity contributed to its continued growth and user engagement.
Brands Owned by SoundCloud
SoundCloud owns 0 brands in our database.
SoundCloud Ownership: Pros & Cons
Advantages
- +Large user-generated content library with 200+ million tracks
- +Strong brand recognition in music discovery and artist promotion
- +Artist-friendly platform supporting independent creators
- +Global reach with diverse user base
- +Multiple revenue streams including subscriptions and advertising
Considerations
- -Intense competition from major streaming platforms
- -Music licensing costs and copyright challenges
- -Dependence on venture capital funding for operations
- -Need for continuous platform innovation and feature development
- -Monetization challenges with free user base
Frequently Asked Questions About SoundCloud
Is SoundCloud a publicly traded company?
No, SoundCloud is a privately held company. It has raised $438 million in venture capital funding but has not undergone an initial public offering.
Who founded SoundCloud?
SoundCloud was founded in 2007 by Alexander Ljung and Eric Wahlforss in Berlin, Germany. Ljung is a Swedish sound designer and Wahlforss is a Swedish electronic musician.
Who owns SoundCloud?
SoundCloud is owned by its founders, venture capital investors, and employees. Major investors include The Raine Group and Temasek Holdings, with Sirius XM investing $75 million in 2020.
How many tracks are on SoundCloud?
SoundCloud hosts over 200 million audio tracks, making it one of the largest music streaming platforms in the world by content volume.
What services does SoundCloud offer?
SoundCloud provides audio streaming, music distribution, artist promotion tools, podcast hosting, and monetization options through its free and premium subscription services.
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