Why SoundCloud Will Beat Other Streaming Music Services – Review

“Soundcloud has focused on making a platform creators want to use. They will continue to improve their consumer experience, as mainstream adoption continues. This will only entice more and more creators to join.” – Dan Polaske Hypebot.com

  As we all have seen in recent music industry news streaming services have been a major topic discussed by music executives, entrepreneurs, experts, and more.  Entrepreneur and blogger Dan Polaske seems to think that the streaming service that will come out on top of this streaming war will be Soundcloud not Spotify, Deezer, or the newly released Beats.   Polaske states that the leading streaming service at the moment is Youtube, noting that it technically isn’t a streaming service Polaske notes that regardless its makes up most music streaming online largely due to its user generated content.   Polaske seems to think that this focus on user generated content is what is going to make Soundcloud stand out among its other competitors.

  In addition to user generated content Polaske sites 3 major differences that will further lead soundcloud to success;

Cheaper

“To get your music on most streaming services you must go through an artist aggregator. There are paid and (apparently) free options here are Spotify’s recommendations. You can upload up to 2 hours of audio for free directly to Soundcloud.”  Dan Polaske Hypebot.com

Directness & Instantaneous 

“According to TuneCore it takes 2-3 business days to get your music on Spotify. In a world of up to the second content, that doesn’t quite cut it. On Soundcloud your music is uploaded directly and is live almost instantaneously.”  Dan Polaske Hypebot.com

Copyright Friendly  

“In order for your music to go live on most streaming services it must be cleared for copyrights. In other words my (unofficial) remix of Beyonce’s “Drunk in Love” will not make it to Spotify. However, on Soundcloud it is totally acceptable.”  Dan Polaske Hypebot.com

Conclusion

Polaske thinks that these factor in addition to the ability of users to upload unfiltered content will only make the platform more appealing to users and people who want to stream and discover new music. The major factor I think is overlooked is the way the brand is thought of in the eyes of consumers and potential users.  Right now when you mention streaming services the first names that come to your head are Spotify, Deezer, and Beats. In order for soundcloud to really even be considered as part of the streaming world it needs to establish a brand  positioning as a streaming service rather than an online distribution platform. To Polaske’s point about user generated content, price, directness, and copyright flexibility I completely agree t that hose are all factors that a benefiting Soundcloud at the moment but as a consumer if someone asked me to recommend a streaming service Soundcloud wouldn’t even be in my top 3 answers.

Articles Cited

http://www.hypebot.com/hypebot/2014/02/why-soundcloud-will-beat-other-streaming-music-services.html

Virgin: Join in the Disruption – A crumbled attempt at formulating a new business plan and providing an entertaining key word for a blog post title…

 

“Join in the disruption

Take part in the debate

 —————————————————————————————————

I found this post in our Berklee Master’s Class 2013 Facebook Group and after finding a general lack of inspiration on a particular topic, I thought this popular set of issues would be interesting to discuss.  Bring on the discourse.

(Yes, Virgin Marketing/R&D team, this is the part where you thank me for completing the survey you so eloquently put together.)

Are you a music fan? Are you a musician? Do you work in the industry?

Well, I’m here aren’t I? Therefore, there must be some sort of degree or level or resonance I have to this grouping of questions or perhaps I’m just trying to kill time while I polish of this Starbucks venti drip coffee (note, comparable large coffee cup sizes are extremely difficult to find in Valencia, and I do miss home. So this experience is killing two birds with one stone – I dislike using colloquialisms, but in this case the caffeine buzz is wearing off and I’m frantically looking at my word count).

Also, to satisfy the needs of those who are looking for immediate gratification, I’ve included my responses in a more ‘traditional survey form’

Key : (Y)es / (N)o
Are you a music fan? (Y)
Are you a musician? (Y)
Do you work in the industry? (Question Unclear  -- In which industry 
are you referring? I'm going to go out on a limb and say that you mean 
the Entertainment Industry, because people haven't worked in the 
Music Industry in sometime [if ever]) – (N)o, but maybe one day.

Do you stream? Do you buy? Do you bypass the official routes and download for free?

I enjoy accessibility. I stream music, I purchase music and believe it or not, you do not have to bypass ‘”the official routes” to obtain music for free.  It’s actually a great tool for exposure and building conversation. See applications like NoiseTrade, Souncloud and Topspin.

**Please Note: If you too also plan on answering this survey or any other of this kind, it would probably prove beneficial not to make an admission of guilt to a corporate entity who will probably seek legal action against you – boo for entrapment and yay for Catherine Zeta Jones.

and again for some of you…

Do you stream? (Y)
Do you buy? (Y)
Do you bypass the official routes and download for free? (N)

Do you think music fans have a responsibility to support the artists whose music they consume by paying a fair price to listen to their output?

Whether you believe it or not, chances are at some point you are supporting an artist (e.g. live music, merchandizing, sharing and starting conversation). Although the recording sector is down, live music is up. The money has moved, but it’s still there. It’s similar to the transition from the Blockbuster to the Television screen. If you’re really asking this question, then you probably didn’t sign your artist to a 360 deal, although this is highly unlikely). So perhaps a more relevant question is: Do you support the record company who owns the artist’s copyright?

Do you think music fans have a responsibility to support the artists 
whose music they consume by paying a fair price to listen to their 
output?  (N) The only responsibility you have is to pay your 
taxes and that's only assuming you don't get caught otherwise.

Do you think music streaming services are damaging the music industry?

If you believe so, you’re foolish. You probably also went to the seventh Eagles’ “Farewell Tour.” Nothing against the Eagles, but you might also believe that records are making a comeback. Sure vinyl sales are up, but it’s not saying much if they’re coming from the basement (not to be confused with a literal basement, although I guess they come from there too). There was also a brief rise in yo-yo sales in the late nineties (I know, I had one, along with a small box of Slammers and Pokemon cards) but where are they now?

See, Nostalgia …

Music Streaming is Accessibility. Accessibility is Mobility and the Heat will probably win the Larry O’Brian trophy again this year.

The days of measuring an artist’s success over SoundScan is over.  Applications like Spotify and Youtube are all about social discovery. It’s the traditional non-GAAP sources that are more accurate measures of “success” rather than units sold. It’s how you provide additional value and monetize this success that will make you truly successful.

Do you think music streaming services are damaging the music 
industry?(N)

If you’ve made it this far, cheers! Thanks for your time and consideration.

MY SPACE AGAIN??

My Space’s decline was mainly due to a series of factors that didn’t make this tool as easy and comfortable as its main competitors Facebook and Soundcloud who has now become  one of the most popular music uploaders. Well, the chief executive is thinking about a new plan for giving a new light to the first significant social network of our generation. It’s hard to give more details about the strategy but the team anticipates its user value, who will be provided by a new experience and not just a duplication of the previous model. While his main competitors stand for streaming services as Spotify and Deezer, one competitive advantage will be the analytic system who is inglobed in it and allows to know “who’s listening to”. It’s not uncommon that an A&R, as in the past, could find this tool more suitable for music research and selection, and once again this could be another positive feature. Another component that provides a competitive advantage, will be the design content and in particular the component of “fun” who is represented in it. The new product is named Specific Media and and the main focus will be on music. In addition it can analyse, through its new technology, who are the most engaged artist’s fans.

However, there is still uncertainty regarding the future profitability of the platform but a new step towards an improvement of the relation between audience and artist seems to be the key factor.