SoundCloud have proven claims that they earned over $100m in 2017 showing a massive rise in revenue for the music streaming company.
SoundCloud offer an alternative to the streaming model that has blown up in recent years with services like Spotify and Apple Music. Whilst SoundCloud now offer an on-demand music streaming service, their platform has carved it’s niche as an open platform for all artists to upload and listen for free.
SoundCloud’s CEO, Kerry Trainor, in 2018 claimed that in 2017 they made over $100 million after getting rid of 40% of their staff to handle their losses. Having just filed their 2017 accounts with UK Companies House the numbers are confirmed as the company’s global revenues hit $102 million (€90.7 million).
It’s an impressive 80% increase on their €50.3 million in generated revenues for 2016. Subscription revenues for their artist upload services and their Go streaming services were up even higher with an 89% rise to €72.6 million ($82m) compared to €38.4 million in 2016.
The reports show clearly where engagement is at it’s highest for SoundCloud. In 2017 71% of SoundCloud’s revenues came from the United States, even more than in 2016 when 69% of their earnings were generated in the US.
SoundCloud have been making significant efforts to reduce their net losses which were reduced to €51.4 million from €70.5 million between 2016 and 2017. The year saw 173 jobs at SoundCloud lost as well as a round of funding to help push them away from their significant losses.
A spokesperson for SoundCloud speaking to Music Business Worldwide said: “SoundCloud’s 2017 Annual Report filed to Companies House reflects a pivotal year in which the company fully re-capitalized for sustainable growth, while achieving substantial revenue growth and loss reductions vs. 2016.
“While 2018 results will not be filed until later this year, we are please to report SoundCloud also surpassed its full year 2018 growth plan, building on the 2017 improvements posted today. We look forward to continuing to grow SoundCloud’s unique creator-driven platform and business in the year ahead.”