SoundCloud is an online audio distribution platform and music sharing website that allows its users to publish, advertise, and share audio. It also functions as a digital signal processor, which enables listeners to stream audio from the platform. SoundCloud is one of the most successful music streaming services in the world, and it was launched in 2007 by Alexander Ljung and Eric Wahlforss. It is now accessible in 190 countries and territories across the globe. As of November 2021, SoundCloud has over 175 million worldwide users and over 76 million active monthly users. In terms of its audience, SoundCloud has over 76 million active monthly users. SoundCloud has about 300 million songs, whereas its rivals estimate having approximately 70 million in their systems each. Free and paid membership options are both accessible on the SoundCloud platform, and it can be accessed through mobile, desktop, and Xbox One devices.
Traditional online streaming platform SoundCloud has transitioned into an entertainment company with premium offerings for its users, including advanced audience insights, playlist pitching tools, and promotional marketing resources. These features were previously only available to SoundCloud employees. SoundCloud was the first streaming service to embrace and execute a user-centric payment model for musicians dubbed fan-powered royalties. This approach is designed to reward listeners for their support of musical artists. SoundCloud has had an impact on the music industry as a result of the achievements of a large number of musicians who have used the platform to launch or advance their careers. Some of these musicians include XXXTentacion, Billie Eilish, Juice Wrld, Lil Peep, Kehlani, Chance the Rapper, Marshmello, Post Malone, Lorde, Khalid, Kali Uchis, Lil Uzi Vert, Rico Nasty, Li SoundCloud has garnered backing from a wide variety of investors and other other media channels, including Twitter. SoundCloud reported its first profitable quarter in the third fiscal quarter of 2020, with double-digit increases in sales and a significant decrease in operating losses.
Alexander Ljung, a Swedish sound designer, and Eric Wahlforss, a Swedish electronic musician, founded SoundCloud in Berlin in August of 2007, and the website didn't go live until October of the following year. Its initial purpose was to make it possible for musicians to work together on recordings by easing the process of sharing and discussing recordings; nevertheless, over time, it evolved into a publishing tool for the dissemination of musical works. According to an article published in Wired magazine, not long after it was established, SoundCloud started to pose a threat to the preeminent position held by Myspace in the market for online platforms that enable artists to share their music.
During the month of April 2009, Doughty Hanson Technology Ventures provided SoundCloud with Series A investment in the amount of €2.5 million. The announcement that SoundCloud has one million users was made on May of 2010. In January of 2011, it was announced that Union Square Ventures and Index Ventures had provided SoundCloud with investment in the form of a Series B round totaling US$10 million. On June 15, 2011, SoundCloud announced that it had five million registered users. On January 23, 2012, the company announced that it had 10 million registered users. SoundCloud also received financing from Ashton Kutcher and Guy Oseary's A-Grade Fund. It was stated in May 2012 that SoundCloud had 15 million members, and it was noted that the service was gaining an additional 1.5 million users per month.
Twitter made the announcement in March 2014 that it will collaborate with SoundCloud to produce its first music app that combined sound. However, the project was never completed since SoundCloud was unable to support licenced music owing to a lack of essential agreements with music companies. This prevented SoundCloud from being able to host licenced music. As of July 2013, SoundCloud had 40 million registered users, and a monthly average of 20 million new users was signing up for the service.