Tag Archives: SoundCloud

SoundCloud (Probably) Needs More Funding



SoundCloud LogoThe topic of SoundCloud’s shaky financial future has been covered here often in the past. And the latest news to come out of the Berlin-based music/podcast distribution company doesn’t do much to improve SoundCloud’s outlook.

A Hacker News user known only by the username throwaway-sc posted this question to that website’s message board:

SoundCloud has deferred salary reviews until the next funding round is complete.
Over the last few years, travel between offices has been restricted to business critical travel only. More expensive food items have started disappearing from our kitchen.

Employees used to get a small bottle of champagne on their birthdays & employment anniversaries. This doesn’t happen anymore.

All of the above feels reasonable.

However, they recently announced that the July 1 salary review that everyone was promised will be deferred. There is no information about back pay or a date about when the next salary review will happen.

Salary increases are predicated on the next round of funding. They anticipate that the round will close over the next couple of months, if not weeks.

I’m sure that everyone here will have been in similar situations before.

What did you do? And, how did you decide whether to continue working or start looking for other opportunities.

It’s worth noting that this is an anonymous post on the internet. There’s no way to confirm its authenticity. In the replies that follow the original post, other Hacker News users condemn throwaway-sc for even mentioning his employer’s name.

But if this post holds any voracity, it proves what we probably already knew; SoundCloud is still struggling financially and will need to raise more funding in order to keep going. The company’s already gone thru multiple rounds of venture capital and debt funding. How much longer can SoundCloud continue to operate on borrowed cash?


Spotify Backs Out of SoundCloud Deal



spotify logoIt seemed strangely appropriate when rumors started circulating earlier this year that media-streaming service Spotify was contemplating a buyout of music/podcast-hosting company SoundCloud. In podcasting terms, the two companies have shared similar profiles as being on the edges of the podcasting space, without ever completely taking the full plunge into the industry. The potential acquisition felt right somehow, if only because it might bring the newly formed SpotiCloud (Soundify? That surely must already be taken.) more into the center of the podcasting space.

But that chance has been dashed, as Spotify has reportedly walked away from the deal with SoundCloud:

The companies were in advanced talks on a deal in September, the FT reported, as Spotify looks to compete with Silicon Valley titans such as Apple and Amazon in the competitive streaming market.

However, the deal has fallen through because Spotify did not want to slow its path towards a flotation with the costs and licensing agreements needed to buy SoundCloud, according to someone familiar with the matter.

The fates of both Spotify and SoundCloud have seemed uncertain for awhile. Both companies have struggled to turn a profit. Spotify is headed for an initial public offering, and it’s possible that taking the company public may save it long enough for the company to build some true staying power. SoundCloud, on the other hand, has taken on a lot of debt thru multiple rounds of venture capital funding. After being passed over on two high profile buyouts (first Twitter and now Spotify), SoundCloud’s next move is anyones guess.


Spotify Might Buy SoundCloud



SoundCloud LogoI’m not sure what happens when two high-profile companies with seemingly obtuse profiles in the same industry collide in one headline. But that’s exactly what’s going on, as news began to leak earlier this week that music/podcast streaming service Spotify is in “advanced talks” to buy music/podcast distribution service SoundCloud.

Of course, this blog is focused on news about podcasting. And while both SoundCloud and Spotify have their own places in the current podcast market, it’s been a bit off an odd trip for both companies:

  • SoundCloud began as a collaboration tool for musicians but later morphed into a music sharing and distribution hub, eventually adding support for podcasts. SoundCloud’s podcasting program was in beta for years before it officially launched. The company has been hemorrhaging money, burning thru multiple rounds of venture capital in an attempt to stay ahead of mounting financial pressure from the major record labels. SoundCloud launched its own premium music-streaming service and began running ads against content for non-paying account holders. Curiously, the company has mostly kept the music and podcasting sides separate. But apparently, embedded SoundCloud players featuring podcast episodes will automatically begin to play SoundCloud-hosted music files if the player isn’t paused after the podcast is finished. This can happen without warning, much to the chagrin of podcasters who thought they were embedding single-episode players onto their websites.
  • spotify logoSpotify is the Swedish-born music-streaming platform that perfected the idea of the Celestial Jukebox; Any song from any artist whenever you want it at the touch of a button. The company grew slowly as it moved into more markets around the world, finally pushing into North America five years ago. When Spotify announced in 2015 that it would be adding support for podcasts, it felt like this could be some seriously new ground for podcasting to break. But Spotify has chosen to work with a small group of content partners and the company has been very slow to add new shows to its podcast directory. And while Spotify has done better in the revenue department than SoundCloud, Spotify was still taking on new debt from investors earlier this year.

Just what any of this means for podcasting is anyones guess. Spotify could try to absorb SoundCloud into its existing platform, or it could let SoundCloud continue to operate independently. Tho, I’m not sure I like the name SpotiCloud. However, Soundify does have a nice ring to it.


Twitter Has Invested $70Million in SoundCloud



SoundCloud LogoNews items about SoundCloud are so repetitive, they’re starting to sound like a broken record. We’ve reported more than once about how either SoundCloud is rapidly burning thru the money it has, or that it’s taken on more debt in the form of venture capital. This week’s SoundCloud news is focused on the second of those two, as apparently Twitter has invested $70million dollars in the audio platform.

This fact on its own is amusing considering Twitter itself has yet to actually turn a profit. Also, this isn’t the first time SoundCloud and Twitter have been linked financially. In 2014, rumors began circulating that the micro-blogging service was about to buy SoundCloud. But that deal ultimately fell thru. Now the two companies have come back together. But this time, Twitter isn’t going for the full buyout.

Since its launch in 2007, SoundCloud has raised over $193million in funding thru a total of five investment rounds. The money has come from nine different investors, including Twitter. Historically, it’s been difficult for audio-streaming services to reach profitability. The biggest hurdle these kinds of companies must overcome is dealing with the licensing and legal issues that arise around streaming music. SoundCloud has even had to consider giving equity to the major record labels in order to keep them happy.

While it does provide services for podcasters, SoundCloud has always been a music-first platform. It’s hard to say what SoundCloud’s financial standing could mean for podcasters who rely on the service. But if the company doesn’t at least break even soon, SoundCloud’s future doesn’t look very bright.


SoundCloud Podcasting Services Down For Many Users



SoundCloud LogoSoundCloud, the so-called “YouTube of audio,” isn’t really living up to that title for many users this weekend. SoundCloud’s Podcasting Community Forum has been inundated with reports of audio files and RSS feeds not working. The problem seems to be primarily affecting SoundCloud users who rely on the service for their podcasts, as opposed to music-based users. The common problem amongst most of these complaints is that media links contained within users’ RSS feeds are returning 403 Forbidden errors. Here’s an example post from SoundCloud user Hector Trujillo 12, who’s just trying to listen to a SoundCloud-hosted podcast:

I receive “Error 403” whenever I try to play or download an episode of the “Guys We F****d” podcast via my podcast app. I contacted the app developer and he informed me that it had nothing to do with the app but actually with the hosting services of the podcast’s platform which in this case is Soundcloud.

Here’s a post from user DJ FOTN who is running a podcast thru SoundCloud:

I’ve been having difficulty this morning getting iTunes Connect to Validate my feed. I’ve tried all of the suggestions and have made sure all my Artwork is set up correctly (I think), I’ve even deleted and re-uploaded the episode.

The Episode is showing up in iTunes Connect but can’t be downloaded.

When I check the feed on https://validator.w3.org/feed/ it says the feed is Validated.

Just a note, if you paste the feed into a browser and locate the mp3 link, following this link returns the error message:
403 Forbidden
Request forbidden by administrative rules.

The only clue to be found as to why this is happening comes from SoundCloud’s status blog:

April 30th, 2016 9:39 PM CET / 1:39 PM PST

“We will be doing maintenance on our site shortly that will affect RSS feeds. This feature will be disabled for all tracks until further notice. Please continue to check our Status Blog for updates.”

Considering the podcasting side of SoundCloud relies on RSS functionality, it seems likely that this maintenance is what’s causing users to get the 403 messages. No word on how long SoundCloud will be performing this maintenance. Problems like this with podcast feeds can cause them to be delisted in the iTunes Store. Hopefully, SoundCloud gets this sorted out before that starts happening to the many users who rely on the service.


SoundCloud Launches New Service, Spotify Gets More Funding



SoundCloud LogoSoundCloud and Spotify are two big audio platforms that have made their fair share of podcasting news over the last year. Here’s a brief roundup of what the two services have been up to lately.

Earlier this month, SoundCloud launched its new SoundCloud Go service. SoundCloud Go is aimed squarely at music fans. It’s unclear what this new service may mean for podcasters. SoundCloud Go boasts these features:

  • More tracks: 125 million+
  • Listen offline
  • Unlock previews as full tracks
  • Ad-free

SoundCloud Go is currently offering a one-month free trial with a price of $9.99/month after that. U.S. based SoundCloud users with Pro Unlimited accounts will be able to subscribe to the service for a discount at $4.99/month.

Swedish streaming service Spotify announced it’d be adding podcasts to its platform almost one year ago. Since then, the company has kept its podcasting support in a fairly limited beta stage while it manually adds new shows to its directory. Last month, it was announced that Spotify received another $1billion worth of funding:

The money is technically “convertible debt,” which means the investors will have a chance to buy in at a discounted rate should Spotify decide to go public. Some experts say that’s going to happen in 2017—Spotify already had $600 million in the bank at the time of this new round, so even though they’re losing money (Spotify lost $180 million in 2014), this new investment will likely keep the company afloat until their IPO.

spotify logoThe launch of SoundCloud Go puts the two services in more direct competition. SoundCloud’s financial status has been somewhat grim for awhile. SoundCloud Go may be a good way for the company to bring in desperately needed revenue. Meanwhile, Spotify’s growth has been slow but steady. However, the company faces increasing costs due to the complex and costly nature of music licensing. If the two services don’t reach financial stability soon, it may the beginning of the end for them both.


Podomatic’s Year-End Deal Targets SoundCloud Users



Podomatic logoMedia hosting and podcasting services company Podomatic announced a year-end promotional deal as well as some new features in its November newsletter. And while the newsletter doesn’t specifically state that the company is trying to court SoundCloud users, it kinda looks that way.

First off, Podomatic has developed an inline Facebook player for its users. This allows clickable players to automatically spawn inside of users’ Facebook feeds. From the newsletter:

…we’ve released a brand new Facebook timeline player with a slick new design and improved sharing capabilities. While other companies are removing Facebook players entirely, we realize how important it is for our podcasters to have their content shared with the world, from anywhere in the world.

Earlier this year, SoundCloud disabled its own Facebook player, which caused a lot of consternation among users. This is probably what Podomatic’s referring to with that “other companies” line.

Second up, Podomatic has created a tool to import media directly from SoundCloud accounts:

Providing our podcasters with a centralized and secure location for their audio files is a commitment we take very seriously. We know how important it is to have your content readily available for your listeners 24/7 without the worry of your work being removed. With our new import tool, you can now transfer all of your episodes and mixes from any hosting site to Podomatic effortlessly, all with just a click of a button.

While the newsletter says Podomatic will import media from any service, its import page sarcastically asks, “Had enough of SoundCloud?”

Finally, Podomatic is having a Fall Sale, with an offer of three months free media hosting with the promo code FALL2015. The Fall Sale offer is good thru December 7, 2015.

Anyone who’s followed podcasting trends in 2015 has seen plenty of negative news when it comes to SoundCloud. So, it’s no surprise that Podomatic is trying to target SoundCloud users. If things continue on as they have for SoundCloud, this tactic might just pay off for Podomatic.


Third-Party Platforms Don’t Care About Your Podcast



SoundCloud LogoAn article about how the Guy Friends Podcast was recently banned from SoundCloud due to copyright claims is getting a lot of attention this week in the podcasting community. It’s a cautionary tale on two fronts about: 1.) Using unlicensed music in a podcast. 2.) Relying solely on a third-party platform to host all of your podcast assets, including your RSS feed.

The first point about unlicensed music is definitely key to the story. But a dozen lengthy blog posts probably wouldn’t even begin to scratch the surface on that topic. The second point, relying on a third-party platform, is what I’ll focus on here.

In podcasting terms, we usually think of “third-party platforms” as service providers like web or media hosting companies. To get literal, you (or your podcast) are considered to be the first party. (We’ll skip over the second party for now.) As the first party, anyone you hire or pay for services is then considered to be a third party. And while often times in podcasting, third parties hold important assets like web or media files, they don’t technically own them. Unless otherwise specified, those assets are yours. You own and control them. You’re just renting some space from whatever third-party service(s) you’re using. That makes these third parties into quasi-landlords over your digital domain. Break their rules, and they can (and probably will) evict you with little warning.

In the case of the Guy Friends Podcast, the show’s producers thought they were following the rules by relying mostly on music that itself had been mixed and mashed up by SoundCloud-hosted artists. The show’s producers understood that the songs contained unlicensed samples. But it only stood to reason that, if the DJ’s who remixed those samples weren’t getting takedowns on SoundCloud, the Guy Friends Podcast should be safe, too. They were even careful to make sure the songs they picked were licensed under Creative Commons. But these precautions weren’t enough to keep them clear of SoundCloud’s content ID system. After three years of hosting everything (including the show’s RSS feed) on SoundCloud, the Guy Friends Podcast was completely removed from the platform:

You can’t listen to anything we’ve ever created in three-plus years on iTunes either, as the RSS is broken. We face a dilemma many others who work online have dealt with as websites are shut down or reworked; our links are dead, our content is sailing around like ghost ships on the internet.

Again, getting back to the copyright topic, there’s a whole lot that could be written about how SoundCloud handled the removal of the Guy Friends Podcast. But if the producers of the show had taken the time to establish their presence on a domain they owned and controlled, the SoundCloud issue would’ve been a bump in the road instead of a major disaster. Instead, the Guy Friends Podcast went all in on SoundCloud’s platform. Now, the show’s producers are faced with the challenge of rebuilding their audience in a new location, with no direct way to carry over their previous subscribers.

This kind of thing has happened many times before in podcasting’s history. But usually, it occurs when a podcasting platform closes shop on short notice, leaving its users out in the cold. The situation with Guy Friends Podcast is slightly different, as SoundCloud is still in operation. But the outcome is the same.

Throughout the article about the Guy Friends Podcast, the show’s producers lay out a series of points that led them to believe SoundCloud was supportive of their show. But SoundCloud eventually gave them the boot because, in the end, third-party platforms don’t care about your podcast. They can (and will) remove your content if you break their rules.

The best preventative measure against this is to always own and control your own space, especially your RSS feed. Knowing that third-party platforms don’t care about your podcast, ask yourself this question: Do you?


SoundCloud Making Changes to e-Mail Handling



SoundCloud LogoEarlier this week, SoundCloud sent a mass e-mail to users about an upcoming update to its e-mail handling procedure. Previously, SoundCloud only sent certain account notifications to an account’s primary e-mail address. Once this change goes into effect, those notifications will also go to secondary e-mail addresses. From the e-mail:

Beginning October 20, 2015, all notifications surrounding your account’s security will be sent to all email addresses associated with your account. These notifications include password recovery emails, notifications related to email changes and confirmation of account deletion requests.
Currently, these notifications are sent only to the primary email address associated with your account. At SoundCloud, we take security very seriously—we are making this change to make sure that you will always be notified when important or unauthorized changes have been made on your account. To ensure that you can always get back into your account, you can then use any of your connected email addresses to sign in.

The notifications that will be sent to all e-mail addresses include:

  • Password recovery messages
  • Notifications related to e-mail changes
  • e-Mail addresses added to your account
  • e-Mail addresses removed from your account
  • Confirmation of account deletion requests

By default, SoundCloud sends all notification to an account’s primary e-mail address. Those notifications could include the ones listed above. But it’d also contain less critical correspondence, such as newsletters, etc. I’m guessing SoundCloud extended these more important notifications to secondary addresses because a lot of people tend to ignore most of the e-mails they get from the services they use. Sending these more-important notifications to all of an account’s e-mail addresses should help to ensure the security of all SoundCloud accounts.