Tag Archives for " SoundCloud Go "
Most pundits in the recorded music business have been advocating for a low-priced streaming music tier for years, predicting that real growth in that end of the business won’t begin until the entry level price falls from $10 to around $5. While Amazon introduced its low-priced tier at the end of last year, you needed to own either an Echo or Dot to take advantage. Now SoundCloud has launched it’s new $4.99 tier to try to compete with some of the deeper pockets in the industry.
The service is called SoundCloud Go and it offers 120 million songs, no ads, and the ability to listen offline. The company’s original tier, SoundCloud Go Plus, is still $9.99 but offers 150 million songs in its catalog.
Considering that all other streaming services have far fewer songs available (Apple Music has 40 million and Spotify 30 million), that might seem like a strong selling point except for the fact that most of these songs are by unknown artists. Even with the other music services, most streaming is dominated by hitmakers, so high catalog numbers don’t really mean anything in the end.
What does count is registered users and paying subscribers though. SoundCloud says it has 175 million users, but won’t say how many of these actually currently pay for the service.
Many think that the company is in serious financial trouble and that SoundCloud Go is a last-ditch effort to increase its paid subscriber base. There have been numerous rumors over the last few years of a larger company buying the company but that has yet to happen, and the official company line today is that it’s not for sale.
SoundCloud definitely has a place in the music ecosystem as it’s the main repository of indie music, and is key to any indie artist music strategy. That doesn’t mean it can make money from that however, as has been the case so far.
It’s been rumored for months, and it’s finally happened. SoundCloud has launched a subscription tier to its streaming service called SoundCloud Go and it’s priced at what’s now become the standard – $9.99 per month ($12.99 for iOS).
The fact of the matter is that SoundCloud Go seems like it’s more to appease the major labels than anything. All 3 majors have now licensed their catalogs to SoundCloud in an effort to get a piece of the DJ remix space they’d been missing.
As for the consumer, there’s not all that much of an advantage. The free tier provides 125+ million tracks while the SoundCloud Go offers the same plus an “expanded catalog” (no idea what that means), offline listening, and it’s ad free.
One of the big problems for consumers is the lack of big names on the platform, or extensive catalog from major label artists, although the platform seems to be adding more content to Go today. Still, the majority of available songs consists of remixes or user uploaded tracks.
SoundCloud has had a major problem with DJ remixes using unlicensed material, and has had to revoke the subscriptions of many of them as a result, which has led to bad blood in the community and mass defections to MixCloud and Dubset. It’s going to be difficult to get them back, if for no other reason than from a logistics standpoint of moving a catalog to a new service.
It appears that SoundCloud Go will pay artists according to their market share, which means that the top 1% will continue to enjoy a higher revenue stream regardless of whether they own the copyright of their material or not.
SoundCloud currently has 175 million active users, so even a conversion rate of 5% would make it a player in the streaming space with nearly 9 million subscribers. SoundCloud Go is only available in the U.S. market for now, but will roll out globally later this year.
By the way, you can avoid the extra $3 iOS charge by signing up on your desktop instead of your iPhone.