SoundCloud’s bottom line is looking up as they reveal that they passed their revenue goals for 2017.
For a lot of 2017 there were worries that SoundCloud faced the imminent end of their era as funding dwindled and their subscription service SoundCloud Go failed to make the traction they hoped for. Now as we enter the fourth month of 2018 SoundCloud seem to have turned things around.
Speaking to Financial Times, SoundCloud CEO Kerry Trainor says that the open music platform surpassed their goal of $100 million revenues for 2018. He continues that whilst growth on their platform was slow in recent years that in 2017 they saw considerably more growth.
The Financial Times said in their article that Trainor said: “After being pressured to build it’s own subscription product, Mr Trainor says SoundCloud has switched gears an is no longer trying to mimic Spotify. Instead, the company wants to focus on its original market among the creators of music.”
Trainor goes on to say that SoundCloud have “significantly reduced the burn” of their cash which is helping move them into “cash flow positive months” recently. The piece by Financial Times also says that SoundCloud’s lacklustre subscription tier is not the priority for the music streaming platform despite plans to potentially make it their prime product. Midia Research suggest that SoundCloud’s subscription service SoundCloud Go has roughly 100,000 paying users.
SoundCloud seem to have taken a bit off a different direction this year after focusing on the listeners in recent years. So far this year SoundCloud seem to be prioritising creators again with the launch of new Premier tools, new promotional opportunities, and releasing statistics in real-time for the first time.