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SoundCloud Losing Money Fast As Record Labels Apply Licensing Pressure

07.27.2015 by M Donaldson // 1 Comment

More SoundCloud pain.

Tech Times:

Digital Music News has reported that SoundCloud is hemorrhaging cash so quickly that it might actually run out before the end of the year, unless it can convince a bank or other investment group to hand out more dough until it can figure out a way to monetize its business model. This is despite a recent report valuing the company at $700 million dollars.



One reason SoundCloud is burning through money so quickly is the huge legal expenses the company is incurring. Record labels are growing impatient with talks intended to legitimize the service through licensing deals, with most labels currently uncompensated for the content streamed on SoundCloud. The record labels are threatening to sue the company if talks don’t progress faster.



I always tell labels / musicians that there’s a danger in making a site that’s outside of your control the main aspect of your promotional strategy (i.e. Facebook, etc). But SoundCloud has been such a useful one, especially as an embeddable platform for our own sites. I’ll be in some trouble just like the rest of you if SC goes under, or if they limit streams for non-paying listeners or start to include audio ads in my content … there will be a heavy load of site embeds to replace. It might be a good idea for us all to start thinking about and preparing for this now.

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Related posts:

  1. We Now Return To The SoundCloud Soap Opera …
  2. SoundCloud’s Phoenix Rises
  3. SoundCloud’s Move Into Distribution

Categories // Uncategorized Tags // SoundCloud

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  1. SoundCloud's Phoenix Rises says:
    November 24, 2020 at 10:51 pm

    […] wasn’t that long ago that, along with many others, this blog was contemplating the possibility of SoundCloud’s demise. Yesterday it was announced, via an annual report, that SoundCloud […]

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8sided.blog is an online admiration of modernist sound and niche culture. We believe in the inherent optimism of creating art as a form of resistance and aim to broadcast those who experiment not just in name but also through action.

It's also the online home of Michael Donaldson, a curious fellow trying his best within the limits of his time. He once competed under the name Q-Burns Abstract Message and was the widely disputed king of sandcastles until his voluntary exile from the music industry.

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