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SoundCloud’s CEO: Why Streaming Alone Just Isn’t Enough

WUIM Editorial
4 min read

SoundCloud CEO on the Future of Music: Streaming Alone Won’t Cut It

When you think of music streaming, giants like Spotify and Apple Music probably come to mind. But SoundCloud’s CEO, Eliah Seton, thinks it’s time to rethink the streaming model. After 18 months at the helm, Seton has a bold vision: a future where streaming is just the beginning for artists and fans alike. So, what does SoundCloud have in store? Let’s dive into how they’re shaking things up.

SoundCloud: A True Marketplace for Artists and Fans

Eliah Seton calls SoundCloud a “two-sided marketplace,” a platform that directly connects artists with fans. Most streaming services act as middlemen, but SoundCloud is bridging that gap to offer artists direct ways to earn from and engage with their fans.

  • Direct Artist-Fan Relationships: Unlike other streaming platforms, SoundCloud allows artists and fans to interact directly, creating a more personal experience for both sides.
  • More Than Just Streaming: SoundCloud’s platform isn’t limited to passive listening. Instead, it’s actively creating revenue channels that connect artists and fans in ways that go far beyond play counts.

The Rise of the Superfan

One of the key elements in SoundCloud’s strategy is the “superfan”—a highly engaged, dedicated listener willing to support their favorite artists. And superfans aren’t just any fans; they represent about 50% of SoundCloud’s user base and spend six times more on music than the average fan.

  • Willingness to Pay for Exclusive Content: Much like the success of OnlyFans for exclusive creator content, Saten sees an opportunity for superfans to pay for access to special music releases or artist interactions.
  • Powering Artists’ Earnings: By allowing superfans to support their favorite artists directly, SoundCloud is creating revenue opportunities that go far beyond traditional streaming payouts.

Beyond Streaming: New Revenue Streams for Artists

Seton recognizes that streaming royalties alone aren’t enough to sustain most musicians. SoundCloud is pushing for a broader revenue model that empowers artists to make a real living from their music.

  • Merchandise: SoundCloud now offers a merchandise store with both SoundCloud-branded items and artist-specific merch, giving fans a way to support their favorite creators.
  • Direct Fan Payments: Fans may soon have the ability to pay artists directly for exclusive perks like early music releases.
  • Paid Fan Communities: SoundCloud is exploring paid memberships where fans get exclusive access, creating a sustainable income stream for artists.
  • Early Concert Ticket Access: Superfans could be given early access to buy concert tickets, adding an extra incentive for fans to join these premium offerings.

Saten sees potential in adapting ideas from the Asian music market, where fans often purchase digital merchandise and microtransactions. This approach could redefine how Western fans support their favorite artists.

SoundCloud’s Unique Role in Music Discovery

SoundCloud has long been a platform for music discovery, and they’re taking it up a notch by connecting artists with an audience actively seeking new sounds. In fact, 50% of listening on SoundCloud focuses on new music—significantly higher than on other platforms.

  • User-Generated Content (UGC): Along with the 100 million tracks from major and indie labels, SoundCloud offers an additional 300 million UGC tracks from unsigned and emerging artists. This makes SoundCloud a goldmine for discovering new talent.
  • AI-Powered Discovery: SoundCloud uses AI to match artists with potential fans by analyzing music and listener behavior, helping artists reach new audiences more easily.

SoundCloud’s Success Stories: From Indie to Mainstream

SoundCloud has a knack for helping artists get discovered, with breakout stars like Ice Spice, Fred Again.., and Lila making waves after building an initial fanbase on the platform. Even major artists like Billie Eilish and Lil Nas X stay connected with their most dedicated fans on SoundCloud.

The Future of SoundCloud: Defining the Next Era of Music

With SoundCloud’s recent profitability and strong financial standing, Saten is optimistic about the future. He sees SoundCloud as more than just a streaming platform—it’s a space where artists and fans are partners, fueling each other’s success.

  • Financial Strength and Stability: SoundCloud reached profitability in 2022 and hasn’t had to raise additional capital for six years, highlighting its strong business foundation.
  • Expansion Opportunities: Saten hinted at future partnerships and acquisitions, aimed at furthering SoundCloud’s mission to empower artists and fans.

With a supportive board and a focus on artist empowerment, SoundCloud is looking to grow in ways that could reshape the entire music industry.

Final Thoughts: SoundCloud is Setting a New Stage for the Music Industry

SoundCloud’s approach to music streaming isn’t just about streaming. By creating more revenue streams and a deeper artist-fan connection, SoundCloud is redefining what it means to be a platform for music. For artists, this could mean a real chance to build sustainable careers. For fans, it’s a chance to connect more meaningfully with the music they love.

If you’re an artist looking to build your brand or a fan wanting to support creators directly, SoundCloud’s future-focused model could be the answer. So, next time you’re streaming on SoundCloud, remember—you’re part of something much bigger than just another playlist.

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