Soundcloud is a multimedia music streaming site where anyone can listen and upload music. With more than 175 million monthly listeners Soundcloud is the most popular music site above Spotify and Apple music. Being responsible for many artists’ fame and fortune Soundcloud, generates their revenue from offering monthly subscriptions. They charge Android users $9.99 per month and Apple users $12.99 per month.
Recently, Soundcloud introduced two new revenue models. The first revenue model is set up by only certain Soundcloud artists in the U.S can monetize their pages with ads as long as the share a percentage of the profit with Soundcloud. The second revenue service is where Soundcloud plays adds to the the members that don’t pay for the monthly subscription and not allowing them to skip the ad for 15 seconds allowing ad exposure, therefore giving soundcloud revenue.
Although Soundcloud is very successful and popular it had revenue problems in the middle of July after having revenue problems the financial and public woes began as Soundcloud announced it only had enough money to last 50 days. Soundcloud said that this was due to mismanagement, after borrowing $70 million dollars in March. After speaking to their shareholders and investors however Soundcloud was able to prevail and fix its financial woes before the months end.