SoundCloud Ensures $75m Investment from U.S-Based SiriusXM
SoundCloud is an audio distribution platform that creates an environment for creators to share music and listen to their favorite compositions. People can listen to music without any charge. As it became known last year, a U.S-based company SiriusXM obtained another streaming company called Pandora. Nevertheless, the company is not planning to stop because, lately, SiriusXM made a $75 million worth of investment in SoundCloud. As a result of the acquisition, SiriusXM will take a share in stake.
With the investment, SoundCloud is going to develop and do a better streaming service. They will do better service to create a more robust platform for both listeners and musicians. As the CEO of SoundCloud, Kerry Trainor, mentions, “SoundCloud’s strong financial performance during three consecutive years directly affects the success of our creator-led growth strategy.” The SoundCloud team already has a clear vision and goals for making the experience more professional and better for everyone. Kerry Trainor adds, “SoundCloud and SiriusXM have built a good relationship in the process of our successful Pandora ad sales agreement. Also, SiriusXM’S investment gives us room for capital flexibility to make into life our vision and make the most out of strategic opportunities as they arise.”
In 2018 the revenues of SoundCloud rose by 23%, and the losses were reduced almost by half. The changes are a significant indicator, as SoundCloud continues to go forward and increase the revenues, along with cutting the losses.
The CEO of SiriusXM has made a statement on his turn, “SoundCloud’s outstanding platform serves an essential role in today’s music ecosystem where new artists have an opportunity to be discovered and have their fan base, and established artists experiment and connect directly with their fans in highly effective ways.
“We admire SoundCloud’s loyal and growing audience and the way the platform treats creators, also its great reputation and success in the global music world. We hope that this cooperation is another opportunity to continue creating value for SiriusXM stockholders by investing in expanding digital audio platforms.”
The cooperation between SoundCloud and SiriusXM gave an opportunity to both platforms to increase their users. As the statistics show, the two media have combined 100 million listeners, the largest in the market. SoundCloud mentions that a lot of famous and well-known artists such as Billie Eilish, Khalid, Post Malone have started their careers with the help of SoundCloud. In the beginning, they were using the platform to share their music and reach their fan base.
Hopefully, the investment and the cooperation can favor both companies, and they’ll provide better services to their creators and listeners. Currently, musicians worldwide have the opportunity to make music and share it through different platforms. They can place their music on SoundCloud, get included in other playlists, and achieve unbelievable popularity in less than a year.
