SoundCloud in Deal Talks With Google After Spotify Drops Out Shows Why Artists Should Build Their Own

The Alphabet unit reportedly is looking to buy the streaming platform, less than a month after Spotify abandoned its own plans to do so.

Source: SoundCloud in Deal Talks With Google After Spotify Drops Out – TheStreet

I’ve said this in countless articles, but I’m restating it right now:

Artists should be building their own platforms and sharing from those platforms out to other locations.

Let’s be realistic about things. Most digital music is bought in two places, Amazon and iTunes. Most music is streamed in two locations: Spotify and Pandora.

Last year I shared this post:

Spotify is in ‘advanced talks’ to buy rival SoundCloud

The post was discussing how Soundcloud was preparing to sell. Now I’ve always had a small issue with SoundCloud because it is predicated on the potential of discovery at the expense of establishing a business model. The common though is “X” was discovered like this, so I can be as well. Using the platform creates more belief that music and artistry should be free.

The source link for this article states now that Spotify dropped out of the bid to buy SoundCloud and now Google is interested. Is this good for SoundCloud? Probably not because Google will not pay the same amount now that there aren’t any other suitors. SoundCloud will become multi-millionaires from the sale, but what will happen with the artists on the platform? Will Google allow the artists to add Google Adsense? Will they monetize the content on the site and release music through Google Play? Will they decide to allow the company to run independently? All of these options are good…

But what if Google backs out due to the conflicts with record labels already invested. SoundCloud could go the way of Napster or MySpace and all of the time and effort spent in building a SoundCloud profile, as opposed to building your own site and sharing out, will be wasted.

Get more details by clicking the Source link.

A quick note from EDMSauce:

Music Streaming Has Become The Most Popular Way To Listen To Music

I haven’t been able to formulate an opinion on this payout number yet, but it does seem quite low. Though some artist have been streamed over 1 billion times, so $0.004891 x 1,000,000,000 is still a pretty penny. Artist like Drake, who is responsible for over 5.4 Billion streams, probably don’t see much of a difference between the declining digital download market and the low streaming payout. In fact, artist who fall into the Hip-Hop/R&B genres are pulling almost all of the streaming numbers, as they are credited for 22% of all music listening and 28% of streams.

My final word on this. Pop Music, Country Music, and Rock and Roll are all genres of music that are still generating sales in a streaming enviroment. Isn’t it interesting that the genres associated with Black music are the primary streaming formats?