8Sided Blog

the scene celebrates itself

Data To Date: The Rapid Rise Of Social And Streaming

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Next Big Sound has released a fascinating industry report on the current state of social media and streaming:

Streaming is fast becoming the primary way we consume music, whether that be through the more interactive on-demand services, algorithmically-driven lean-back experiences, the increasingly popular format of human curation and playlists (think Beats One radio or Spotify’s discovery feature), or some combination of the above.



What really blew our minds when tallying these totals was that the number of online plays in just the first six months of the year far exceeds what we tracked in all of 2014, even before the addition of Pandora’s data. Let’s take a moment to consider what impact this could have on the music industry at large. For musicians, their piece of the streaming pie will only continue to grow.


It would seem streaming is here to stay. Is this the final step in the format wars? I mean, what could possibly come after streaming as a music delivery format? Honestly, I’m sort of open to the idea of a combination of streaming, downloads (if you gotta have it), and vinyl or deluxe physical packages as our musical diet from here on out.

The Next Big Sound report also has some news about SoundCloud that would normally be encouraging for them. Instead, it will probably just add to the pressure they are receiving from the majors:

SoundCloud’s play counts continue to climb at a steady rate year over year. Next Big Sound tracked close to 5 billion plays on the service in May 2015, which is twice that of the same month a year before, and five-fold the year prior. At the same time, unless you’re living under said rock, you know that the social streaming service has long been in ongoing negotiations with labels for direct licensing deals, reportedly with the intention of launching a subscription service.



If slow and steady wins the race, SoundCloud could plausibly compete with more mainstream platforms such as Spotify or Rdio. However, SoundCloud provides a valuable niche service in that it is optimized for content such as mix tapes and DJ sets. If striking direct deals with rights holders – integral to legitimizing the service and monetizing content – means they are essentially strong-armed into charging users for a service they were once offered at no cost, they’ll want to see that growth rate remain as stable as it has been.


I sincerely wish them the best of luck with that.


There’s some further dissection of Next Big Sound’s report from Forbes:

You read that right: one trillion streams. That’s the number tracked by Next Big Sound in the first half of 2015 across YouTube, Vevo, Spotify, Rdio, SoundCloud, Vimeo and Pandora. In other words, the average Earthling has streamed more than 140 songs over the past six months. There should be no doubt not only that streaming is here to stay, but that it offers the music industry a level of reach never previously seen in human history.

Living In Fear Of Soundcloud’s Take-Down Robot

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FACT:

In April, we reported that SoundCloud’s new copyright infringement software was removing DJ mixes from various websites, including FACT’s.



Things appear to have got worse. London internet station Radar Radio has today had its entire account taken down, despite clocking up over 900,000 plays.



We spoke to Radar Radio, who told us that they were originally told that they had seven days to sort out any copyright infringements on their page, but the account was closed the next day.



Mystifyingly, on top of that DJ Plastician has had his account suspended over a track that he produced, released and owns the publishing rights to.


Behold, once again, the perils of automatic copyright-detection software combined with intense legal pressure from outside forces. There’s no real mystery why Radar Radio was penalized — I’m sure they were posting shows with content that triggered the detection software — but the DJ who claims to have ownership of every facet of the removed track seems to have been a victim of electronic misidentification. (Update: Another possibility I just considered is that his distributor may have claimed the copyright which triggered the take-down. It wouldn’t seem that a distributor would hold the necessary rights to be able to do this, but I do know — from experience — that INgrooves was causing some take-downs for a while. If that’s still happening or how common a practice this is among digital distribution entities is unknown to me.)

I was told that SoundCloud had a ‘three strikes’ rule, where an account would be terminated if this threshold of copyright infringement had been reached. This was worrisome for me as I have a lot of Q-Burns Abstract Message content on my SoundCloud account that have master rights ownership by various entities, though I am the songwriter and publisher. Legally the master holders do have the right to flag my content, but I am always able to work it out with them to keep these tracks live on my account. But every time SoundCloud updates this detection software (or new audio fingerprints are added en masse) then I’m confronted with a number of new take-downs to dispute. It’s annoying, but even more annoying is the fear of suddenly acquiring three take-downs at once for my own compositions, and then I’m going through the hassle of reinstating my terminated account.

One should not have to use a service — and pay for it, as I am — while being fearful that it could be taken from you for reasons outside of your control. Surely this can’t be the way forward.

I am pretty certain SoundCloud are sick about all this and wish it weren’t the case. Indeed, our friends at Universal, Sony, et al are to blame. And credit where credit is due — when I do have to deal with a take-down, SoundCloud are always reasonably swift to consider my dispute and have the track reinstated. As always, I remain interested, though not necessarily optimistic, in how the company works to resolve their own dispute with the major label bullies.

SoundCloud Losing Money Fast As Record Labels Apply Licensing Pressure

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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.

A SoundCloud Subscription Service Is Officially On The Way

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Complex:

Over a month after a leaked contract broke the news of SoundCloud’s plans to implement a paid subscription service the company’s co-founder and Chief Technology Officer Eric Wahlforss has confirmed the move. While Wahlforss didn’t confirm or deny the details featured in the June leak, the contract that popped up online last month outlined a three-tier subscription service consisting of a free option and two premium offerings. The free option will allegedly give users access to a limited catalog with advertisements included while the cheapest paid service offers a larger catalog and an ad-free experience. The most expensive option would allow users unlimited and ad-free access to SoundCloud’s entire catalog.



SoundCloud’s paid services applied solely to musicians / labels up to this point, with potential listeners being the reason to deposit the yearly fee. It will be interesting, and probably frustrating, to see how SoundCloud will juggle its usefulness to professional users with an apparent new emphasis on listener generated revenue. Many labels and artists — including those in the ‘majors’ — are reliant on SoundCloud for promotion and embeds on their sites. If this forced compromise cripples its effectiveness for promotion then there will be a bit of scrambling from labels of any stature.