Start those 30-day free premium trials because SoundCloud might not be here much longer.
A death knell resounded in the halls of SoundCloud’s Berlin headquarters last Tuesday after the user-based streaming service swiftly laid off 40 percent of its staff and shuttered two offices in a closed meeting. Co-founder Alex Ljung said the decision was made in order to “ensure our path to long-term, independent success.”
Initially thought to be a rumor, reports of the site’s inevitable demise sprouted online. Sources at SoundCloud told TechCrunch that founders Ljung and Eric Wahlforss confessed that the company has only enough money to last until Quarter 4, or approximately 80 more days.
The news has left underground MCs, DJs, amateur producers, and other unsigned artists scrambling to archive their music on SoundCloud before they’re gone forever. Unlike competitors, Spotify and Apple Music, SoundCloud allows users to upload and share their own tracks and audio content.
For the independent music world, Rome seems to be burning because love it or hate it, SoundCloud served as the springboard for countless artists such as Lil Pump, Playboi Carti, Lil Uzi Vert, and Young Thug. This rise in underground viral hip hop led to a loose subculture of SoundCloud rappers; a subversive brand of amateur MCs raised on bassy beats, Percocet, and viral hooks.
As for the company’s financial ailments, experts cite SoundCloud’s inability to brand itself as a big streaming platform like Spotify (which it’s not) instead of capitalizing on the app’s truly organic uploading features for young artists and listeners alike.
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