SoundCloud is on a comeback streak having doubled revenue in 2017
SoundCloud made over $100 million in 2017.
The Berlin-based streaming company has had a rough few years. In 2017 they had to lay-off 173 staff members in order to keep the sinking boat afloat.
Then came the blow of founding member and CEO Alexander Ljung stepping down to be replaced by Vimeo CEO Kerry Trainor.
There was a lot of doubt whether the Cloud of Sound would make it through the year but alas, they turned it around and are heading up to Cloud 9, showing that a valued product will always win.
After the 2017 overhaul the company INCREASED its revenue by more than 80%, approximately $102 million, and it’s just the beginning.
It appears that the dramatic reshuffling and installation of a new CEO was just what the company needed to establish a more stable position.
How did they do it?
An examination by Music Business Worldwide shows that SoundCloud’s success comes from these factors:
- More revenue from subscriptions (up by 89%)
- Advertising (Up 53%)
- Lowering annual operational loss (to $27 million)
While 2018’s results aren’t currently available (only later in the year), the company says it surpassed its 2018 growth plan and continues to be focused on two major ideas:
Expanding its creator business with a suite of useful artist tools and offering a unique listening experience for its “young, trendsetting, global music fans.”
The latter goal may seem like a tough cookie to crack considering the competition in the streaming field keeps escalating with brands like Spotify and Apple Music solidifying their place as market leaders.
Despite all of that, SoundCloud is still unrivalled regarding their focus on music creation/creators.
Sourced
