Soundcloud is on a concrete path to prominence thanks to SiriusXM. The world-famous radio station just put forth a $75 Million Investment in the Berlin-based company and will be holding a minority stake. This new burst in revenue to support the company’s growth comes after Soundcloud’s best year for subscriptions and streams of artists, especially independent creators.
“We have an exciting roadmap focused on deepening the connections between creators and listeners that fuel creator discovery, career growth and the evolution of music culture on SoundCloud,” says Soundcloud CEO Kerry Trainor. “We’ve built a great relationship with SiriusXM through our highly successful Pandora ad sales agreement, and their investment gives us added capital flexibility to accelerate our vision and take advantage of strategic opportunities as they arise.”
The investment will be used to enhance the company’s existing services, as well as help with the development of new products. This is in addition to the company’s newfound profit of more than half of that amount means that the company has pulled a near-complete 180 from their massive losses in 2017, including the closing of two offices and 40% cut of their workforce. As a platform that launched the careers of so many artists and continues to facilitate collaboration and community to this day, the company will become a force in the coming decade with their newfound financial gains.
“SoundCloud’s three consecutive years of strong financial performance directly reflect the success of our creator-led growth strategy,” said Kerry Trainor, Chief Executive Officer, SoundCloud. “We have an exciting roadmap focused on deepening the connections between creators and listeners that fuel creator discovery, career growth and the evolution of music culture on SoundCloud. We’ve built a great relationship with SiriusXM through our highly successful Pandora ad sales agreement, and their investment gives us added capital flexibility to accelerate our vision and take advantage of strategic opportunities as they arise.”
Do YOU believe Soundcloud can now stand a chance against the music streaming titans such as ass Spotify, Apple Music, Tidal, and YouTube Music? We shall see what comes of this huge investment.
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