According to the company, approximately 175 million people tune in to their platform on a monthly basis, more than four times Spotify’s global audience. “We have listeners in every single country in the world — and in space,” said Alex Ljung, SoundCloud’s chief executive, referring to recordings of the International Space Station posted by a Canadian astronaut.
The changes to the platform received an overwhelming amount of negative reviews, but the music giant now seeks to capitalize on their millions of users by incorporate advertisements. For the first time, Soundcloud will now let artists and record labels to collect royalties on their music as they are the driving force of the company. They aim to parallel the same strategy Spotify has incorporated with their business, having listeners pay a premium in order to enjoy music without having to listen to ads.
As listeners roll their eyes while reading this news, we can all agree that Soundcloud, similar to Facebook, is losing its cool factor by incorporating ads into their business campaign. Although people may complain about this new business strategy of theirs, the main question is, will the incorporation of ads steer their listeners towards another platform or are the current users too invested in the platform to make a switch?