Soundcloud, the worlds most popular indie streaming service, is to become a paid service by the end of the year. It seems the Soundcloud days are counted.
Major Labels forcing Soundcloud to change
As of now, everything on Soundcloud is free for the over 175 million users, but the tracks are already set for a paid transformation. This would mark the end of an era and pose a big drawback for independent artists. According to Digital Music News, already by the end of the year, Soundcloud will become a paid streaming service.
After almost 10 years, Soundcould succumbs to its investors and the major labels. Despite the fact that most artists pay money for premium accounts, it never became profitable. The attempt to monetize the site with advertisements failed too. In 2014, Soundcloud hat net losses of over 40 Million Euro. Now the British company hired the digital strategist Alison Moore (former NBC Universal) as a chief revenue officer who will turn Soundcloud into a subscription based model shortly.
It seems very questionable to us that this new strategy is going to work out. In the first place, Soundcloud is used by independent artists to get their music heard. This indie-mentality is the key that made Soundcloud the worldwide largest music streaming service, outrunning Spotify by nearly 100 million users.
The inevitable doom of Soundcloud already began some time back when countless tracks and songs of major and minor artists got blocked because of supposed copyright infringement. That already caused an uproar in the scene.
Farewell beloved Soundcloud, rest in peace, perhaps your grave will be next to that of MySpace…
The rats will be leaving the sinking ship and swimming over to Mixcloud.