SoundCloud has been a popular music streaming platform for people in the recent years. However, with the advent of other such platforms increasing the competition, SoundCloud have been facing tough times recently. Few months back, the head and co-founder of SoundCloud Alex Ljung had to take a difficult decision of trimming the staff by 173 people which resulted in the closure of two of their major offices.
‘Taking Back Control’
After few months of despair and uncertainty, SoundCloud is ready to become a major force again in the music and tech industry. According to Ljung, SoundCloud has gone back to its roots in order to ‘Take back Control’ of its own destiny. Interestingly, this major shift to return to the old days includes the launch of new products in the market to help artists from across the globe to upload their music and allow them to be discovered. This feature is not yet available on their competitive platforms such as Deezer, Apple Music or Spotify.
‘Difficult Times are behind us now’
There was a moment were the future of SoundCloud was up for debate. The team had to lose 173 heads which was about 40 percent of the total workforce available. The loss of people due to cost cutting measures also lead to closure of two major offices. But such drastic steps had to be taken to preserve the future of the company.
The Maths behind SoundCloud
The number during the difficult times of SoundCloud is still staggering nonetheless. SoundCloud showed an increase in revenue in 2015 by over 21.6 percent as compared to 2014 with a mammoth €21.1 million in revenue. However, SoundCloud reported operating losses of €48.6 million which was 25 percent increase over the last year with the total loss incurred jumping to €51.2 million with an acceleration of 30.9 percent over the past year. The organization was not at all doing well as shown by operating losses which were double the revenue generated. The trimming of staff and closure of offices have helped to save €16.9 million but still there is a huge gap prevalent between revenue and profitability.
‘Still among the best in the world’
Despite the hardships faced by SoundCloud in the recent years, Ljung is still in a combative nature. SoundCloud are still one of the largest music platforms across the world and are also a part of the top 20 all-time app downloads over the App Store. The SoundCloud user base is growing every day and the platform is still engaging people throughout the year. You can find a number of Creators on the platform with the number of sound tracks also increasing every day. SoundCloud has acquired a lot of licenses and is starting to generate more ad revenues than before. Add the growing number of subscriptions for Go and Go+ products; it looks like things have taken a turn for good for the organization.
‘The Future of SoundCloud Downloader
Ljung is confident that SoundCloud will remain a platform for the creators to showcase their talents. Also, SC has managed to become one of the largest growing listener platforms. The revenue generated by SoundCloud is growing rapidly. Music Streaming platforms are going to see a boom in the upcoming 10 years and this could be a good news for SoundCloud fans as a whole. Ljung also added the fact that from now on, SoundCloud will try to do more things unique to them and lesser things related to other such platforms. In all, the future does indeed look very bright for the platform as a whole.