Alexis Kestler
How much is SoundCloud worth right now? Discover the key statistics, revenue, benefits, and valuation of SoundCloud, one of the largest open music streaming platforms that have revolutionized the way independent music creators share their talent with the world.
SoundCloud is an open music streaming platform that has become a powerhouse for independent music creators, offering a platform for millions of artists to showcase their talents. Founded in 2007, it has experienced significant growth in both users and revenue, with over 130 million registered users and generating $271 million in revenue in 2021. Despite facing challenges with profitability and copyright infringement issues, SoundCloud remains a vital platform for emerging artists, fostering creativity and collaboration within the music industry. Continue reading to explore SoundCloud's key statistics, revenue, benefits, and valuation, providing insights into its growth and impact in the music industry.
SoundCloud Net Worth
Firstly, let's look at the roots of SoundCloud. Founded in 2007 by Alex Ljung and Eric Wahlforss, SoundCloud was conceived as a platform for sharing audio content. From 2009 to 2014, SoundCloud raised over $120 million in venture funding from prominent investors such as Union Square Ventures, Index Ventures, and Kleiner Perkins.
Recent Valuation and Revenue
No doubt, one of SoundCloud's pivotal moments came in March 2021. The company announced a new $75 million Series G funding round led by Temasek Holdings, bringing the company's valuation to a substantial $1.1 billion as reported by TechCrunch. However, SoundCloud has always kept its revenue or profit figures private. Nonetheless, estimates suggest that the platform's annual revenues fall between $200-250 million.
Additionally, it's worth noting that SoundCloud ran at a net loss for many years. Yet, some 2022 reports hint that the company has now reached a break-even point or is even profitable.
User Base and Services
Moreover, SoundCloud claimed to host over 250 million monthly active users across its consumer and creator services in 2021. Major record labels like Warner Music Group, Sony Music, and Universal Music have invested in SoundCloud, and more than 30 million creators are believed to have accounts on the platform.
SoundCloud offers subscription services such as SoundCloud Pro and SoundCloud Premier, which empower creators to monetize their content. SoundCloud Go+, a $9.99/month consumer subscription service, provides ad-free access to over 300 million tracks.
Current Estimated Worth
Lastly, independent estimates suggest that SoundCloud's current worth may range between $700 million and $1.2 billion. This is based on its user base, revenue potential, and investors.
In conclusion, SoundCloud has cemented its place as a leading platform in the audio/music domain, with a valuation likely between $700 million and $1 billion.
SoundCloud Worth: 2023 Snapshot
As of 2023, SoundCloud's net worth can be approximated through various aspects, such as its valuation, revenue, and user base. The platform was valued at around $800 million in 2022 according to Headphones Addict. SoundCloud's global revenues witnessed a 19.2% year-over-year (YoY) increase to €230.7 million (approximately $273 million) in 2021 as reported by Music Ally. With 130 million registered users and over 40 million artists featuring music on its service, SoundCloud had amassed a colossal 320 million tracks on its platform by the end of 2021.
In brief, here's an overview of SoundCloud's worth based on different aspects:
- Valuation (2022): $800 million
- Revenue (2021): €230.7 million (approximately $273 million)
- Registered users: 130 million
- Artists: Over 40 million
- Tracks: 320 million
However, it's critical to remember that these figures are merely estimates and can fluctuate depending on the source and the methodology used for their calculation. The actual net worth of SoundCloud is not publicly disclosed, but the information given provides a general understanding of its financial position in the industry.
How Many Users Does SoundCloud Have?
SoundCloud boasts a significant user base of over 175 million monthly users, including free, registered, and subscribers. While data for recent years are not available, it is estimated that the user count has slightly increased since 2017.
However, SoundCloud experienced a decline in listeners after reaching its peak in 2014, as other music streaming platforms attracted a larger audience of music lovers.
SoundCloud Statistics
Let's delve into some interesting statistics about SoundCloud:
- SoundCloud boasts a thriving community of 30 million creators.
- SoundCloud's revenue surged to $273 million in 2021, witnessing growth from $218 million in 2020.
- Over 76 million individuals are subscribed to SoundCloud.
- The value of the SoundCloud brand soared to $800 million in 2023, up from $700 million in 2021.
- SoundCloud serves as a platform for over 135,000 independent artists to showcase their talent.
- A vast collection of music awaits on SoundCloud, with over 150 million songs available in 2021, a slight decrease from 200 million songs in 2020.
- More than 27% of SoundCloud's user base hails from the United States.
- The platform's audience predominantly consists of individuals aged 18 to 34, accounting for 63.5%.
- In 2022, SoundCloud had approximately 120 million active monthly users, a decline from 175 million in 2017.
SoundCloud Artists
SoundCloud boasts over 20 million artists, as per a 2020 report. However, most of them do not possess the “SoundCloud Pro Unlimited” premium creator account.
More than 100,000 independent artists on SoundCloud monetize their music through premium creator accounts. SoundCloud serves as their distributor, uploading their music on its platform and other streaming services while collecting and distributing royalties, with artists receiving 80% of the revenue.
SoundCloud's Market Share Compared to Other Streaming Services
- SoundCloud dominates, with 27.5% of its traffic originating from the United States, according to Similar Web data.
- The United Kingdom follows with 5.6% of SoundCloud's traffic, while Germany holds 5.1%, France 3.3%, and Canada 3.2%.
- The remaining countries collectively contribute 55.3% of SoundCloud's traffic.
SoundCloud Demographics
Demographics on SoundCloud reveal an intriguing age distribution. Among the users, 35% fall within the youthful range of 18-35 years old. However, when examining web traffic, young individuals under 35 years old dominate the platform, accounting for over 60% of visitors.
Visitor Breakdown by Age:
- 5%: 18-24 years old
- 5%: 25-34 years old
- 3%: 34-44 years old
- 8%: 45-54 years old
- 6%: 55-64 years old
- 9%: 65+ years old
Furthermore, most SoundCloud visitors are male, comprising more than 66% of the user base.
SoundCloud's Valuation Soars to Over $800 Million in 2023
SoundCloud, the popular audio platform, has experienced remarkable growth in its brand value over the years. Starting with a valuation of $80 million in 2015, it has now surged to over $800 million in 2023, establishing itself as a significant player in the market.
Comparative Value:
- SoundCloud's growth trajectory is evident as its brand value climbed from $150 million in 2016 to $700 million in 2021, demonstrating a steady upward trend.
- In contrast, the leading music streaming platform Spotify holds a staggering market cap of approximately $30 billion, dwarfing SoundCloud's valuation.
- Similarly, Pandora Radio boasts a market cap of $2.68 billion, further highlighting the substantial difference between their valuations.
SoundCloud's Impressive Rise:
- Founded in 2007, SoundCloud has achieved remarkable success in a relatively short span of time.
- Its consistent growth showcases its ability to capture a substantial portion of the audio streaming market.
- Although still trailing behind industry giants, SoundCloud's valuation of over $800 million is a testament to its enduring popularity and potential for further expansion.
How much do artists earn on SoundCloud?
Artists can expect to earn between $2.5 and $4 for every 1000 streams, or $0.0025 to $0.004 per stream in monetized countries. Since the introduction of the Fan-Powered Royalties system in 2021, independent creators monetizing on SoundCloud have seen an average increase of 60% in their earnings.
SoundCloud's unique payment system pays artists based solely on plays by fans rather than revenue pools like other streaming platforms. However, the payout per stream is notably lower compared to platforms like Tidal, Apple Music, or Spotify.
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Benefits of SoundCloud for Artists and Listeners
Below are the advantages of SoundCloud for both artists and listeners.
For Artists:
1. Showcase and Connect: SoundCloud provides a vital platform for artists to showcase their music, connect with their fanbase, and receive valuable feedback from fellow creators.
2. Extensive Reach: With over 175 million listeners, SoundCloud offers artists a wide audience to share their music with and potentially gain new fans.
For Listeners:
- Free Streaming Service: Listeners can enjoy the benefits of SoundCloud's free streaming service, allowing them to explore a vast collection of music tracks without any cost.
- Diverse Music Selection: SoundCloud offers a wide range of music tracks, allowing listeners to discover new and unique music across various genres.
- Advanced Features: Users have the option to subscribe to a paid plan, unlocking access to more advanced features and tools on the platform.
Bottom Line
SoundCloud is a popular music streaming platform that has revolutionized how independent musicians share their talent. Despite challenges with making a profit and copyright issues, SoundCloud remains a valuable platform for over 20 million artists and has attracted over 175 million monthly users.
Its valuation has grown to over $800 million in 2023, showing its increasing popularity. While it may not be as big as Spotify, SoundCloud is important for supporting independent artists and providing a diverse range of music for listeners.
