Business Insider: SoundCloud’s CEO is stepping down after the company raised a big round of new funding. “SoundCloud CEO and cofounder Alex Ljung is stepping down from the top role as the company announces a new round of funding from investors The Raine Group and Temasek. The round reportedly comes in at $170 million (£130 million).”
Digital Trends: Will Soundcloud Bite The Dust? Investors To Determine Its Fate By Friday. “It turns out that, without a massive parent company like Google, it’s quite difficult for streaming services to turn a profit — especially when your CEO is too busy partying to pay attention. Now, the platform is relying on its investors to stay alive, with a rescue funding round set to close tomorrow, August 11.” Which is today.
TechCrunch: Sick of SoundCloud? Anchor offers podcast transfer with free hosting . “SoundCloud is on shaky financial footing, saying it only has enough money to last a few more months unless someone buys or invests in it. That’s sure to cause anxiety in content creators with their life’s work stored on SoundCloud. Now some new startups are nipping at SoundCloud’s heels by focusing on podcasting in ways the music streaming service never did.”
Bloomberg: Soundcloud Is Near Deal to Sell Stakes to Private Equity. “SoundCloud Ltd. is close to a deal to sell stakes in the company to a pair of private equity firms, according to people familiar with the matter, an investment that will help the beleaguered music-streaming service keep operating for the foreseeable future.”
The Verge: How Soundcloud’s Broken Business Model Drove Artists Away. “In December 2012, as part of a major redesign, SoundCloud introduced a feature called the repost. Similar to Tumblr’s reblog or Twitter’s retweet, reposts were designed as a way to help new music spread virally. But from the start, artists abused the feature by constantly reposting their own tracks, pushing them back to the top of their followers’ feeds every few days. Artist collectives made agreements to repost one another’s songs, and eventually, a popular music blog was caught selling ‘slingshot’ packages that included paid reposts. Fans and artists alike loudly complained — but SoundCloud, which was busy fighting an existential threat from major record labels, didn’t address the abuse for nearly three years.”
Motherboard: A Team of Volunteers Is Archiving SoundCloud in Case it Dies. “Spurred by recent reports the German streaming music and audio company may be running out of cash, The Archive Team is racing to preserve sound files—at high cost.”
TechCrunch: SoundCloud sinks as leaks say layoffs buy little time. “A tense scene unfolded yesterday as user-generated, music-streaming service SoundCloud held an all-hands meeting to explain to employees why it suddenly had to lay off 40 percent of its staff last week.” If SoundCloud unexpectedly closes it’s going to mess up a lot of podcasters.