Has anyone ever made money from SoundCloud?
It’s a $169 million question following yet another last minute injection of cash from The Raine Group and Temasek.
We’ve been harsh as hell on SoundCloud lately, and it’s becoming more justified with each given day. Just weeks after laying off almost half it’s staff with little warning, mass rumors circulating of its demise, the company has once again found some crazy people out there willing to inject some funds into it’s wildly bloated project. Yes, bloated. SoundCloud is no longer what it used to be. It’s spent the past few years chasing the likes of Spotify and iTunes, completely disregarding it’s core group of users and leaving them out to pasture alone.
We were one of those early users. Engaging with others trying to let their voice be heard. It was fun. SoundCloud was a marvelous community, with many interactive users fully engaged in the music and beats that others were making, as well as the small indie operations such as us who were fully behind the careers of those whom had been misguidedly overlooked. It was a champion to the music community, as an outlet for all us creatives out there, but then came the money crunch. The long years of negotiations with major labels to created a poorly thought out copy of Spotify’s monthly subscriptions. Then, they followed that up by removing community ran groups, replacing them with tools that didn’t have one-tenth of the power to get your music heard by new ears.
In short, SoundCloud has turned it’s back on those who cherished and relied on it most. We don’t need to fill you in on what’s happened the past year…it’s been highly documented almost daily as it has slowly fell from it’s heights at the top of the food chain.
Now, the definition of insanity is doing the same thing over and over again while expecting different results? So we must ask these groups pledging funds…..why?
While those groups will probably never give us a legitimate straight answer, here is the news behind this latest injection of cash:
In a media release, SoundCloud said the investment ‘will ensure a strong, independent future for SoundCloud, funding deeper development and marketing of its core tools used by millions of audio creators’.
Their first act is a changing of the guard: veteran digital media exec Kerry Trainor has been named SoundCloud’s new CEO, with Michael Weissman joining the company as Chief Operating Officer. Thus, leaving outgoing CEO and SoundCloud co-founder Alexander Ljung to take up the position of Chairman of the company’s board with his fellow co-founder Eric Wahlforss named as Chief Product Officer.
Can a new shuffle at the top of the ladder really lead to a change? Only time will tell. Our best guess? Kiss goodbye to $169 million. However, one person, Joe Puthenveetil, a Vice President at Raine, who will join the board at Soundcloud, remains highly upbeat:
“SoundCloud is a unique and essential music platform for new and developing artists,” said Fred Davis, Partner at Raine. “For ten years, SoundCloud has been the birthplace of genre-breaking musical movements in Electronica and Hip Hop.
“We are excited to partner with Temasek on this investment and are confident our involvement can ensure it remains the most artist-friendly music creation and streaming platform in the world.”
Good luck Joe, you’re going to need it.