Is music streaming really taking a turn?
Recently in reports by the tech company giant, Bloomberg, SoundCloud Ltd.’s owners, such as founders and financiers and investors, are in the midst of considering a possible massive sale for the entity. To be exact, the company is looking at a personal net worth value of $1 billion right now if they were to proceed with this sale. The German music streaming service has been for a while now one of the leading companies in the music industry as a source for both artists to distribute their work easily across a huge audience, and for listeners to experience the music via a new platform. However, the wavelength adorned organization is still searching for “growth and profit from its user base,” and they believe that with a powerful move like this exchange of the company, this would get them there. Yet, there has been no luck in the market and no willing buyers.
As noted by Hypetrak, SoundCloud now has over a 175 million user-base. And in March, it had just added a new feature to its application called “SoundCloud Go,” making more revenue out of their model by adding the element of a premium subscription service for $10 a month, (much like Spotify). They had also updated their SoundCloud “Stations” feature, which allowed users to have custom made radio stations based on their interests in artists. It was an algorithmic update that really augmented the platform, content, and experience of the SoundCloud model. In addition to all of this, back in June last month, SoundCloud had been given a a $70 million boost from one of the social networking titans, Twitter Inc.. This certainly bounced the value of the company way up, exactly $700 million, according to Hypetrak.
Bloomberg also made a point to note that back in 2014, SoundCloud had been open enough to share that their “sales rose 54 percent to 17.3 million euros ($19 million)” in just over a year. In which case, this shows how profitably beneficial it would be to run an entity like SoundCloud, and there would be endless possibilities to innovate its structure even further. Wonder what will be the next move!