SoundCloud decides that it will now stream music giving Tidal, Apple, & Spotify a run for their money.

1. Decision Making
By Shelby Brooks

2. The Article

3. SoundCloud Starts Subscription Plan
SoundCloud is going to release a subscription plan that will
have two tiers, free and one that is $10 a month. It is setting
itself up to go against the bigger music streaming companies
such as Apple & Spotify.

4. SoundCloud
SoundCloud is a free global music platform, where anyone can
upload music and share it. It has been known to be mostly used
by House, EDM, and Dubstep DJ’s to upload their mixes, and
rappers, but in recent years more mainstream artist are
becoming more present.

5. SoundCloud
Paid Subscription
$10 per month
125 million songs
Ad Free
Offline Listening

6. SoundCloud
Free Subscription
Free
100 Million Songs
Ads
In-App listening

7. Decision Making

8. Decision Making
Issues arise in organizations that require special attention. The
organization has to examine the situation and figure out what
would be the best approach to solving it. First, by identifying
the cause, then finding alternatives.

9. Decision Making
There are different methods to decision making. Sometimes
they are made by large boards where research is done and the
outcome is voted on. Other times small groups make decisions,
then there is workplace democracy where the workers help
make decisions.

10. Theory Application

11. How Does It Apply?
With all the amount of users that SoundCloud has - 175
million - the hosting fees are costing them more money than
they are making, so they have to find an alternative to correct
this problem.

12. Reasons Why
● Losing money is a
problem
● Loss of $24.5 million
● Desire to keep company
● Solution must be found to
maintain

13. Where does it
apply?

14. Decision to Stream
The decision to start a streaming service was, more than likely,
not arrived at lightly. SoundCloud has been a free music
platform since 2008 and they have millions of users all around
the globe. It also supports unsigned & indie talent and that
may be lost.

15. Decision to Stream
The Internet is changing how people listen to music. 34% of
the recording industry revenue in the U.S. was from music
streaming. So, to aliviate SoundCloud’s finacial burdern they
made to decision to sign licensing agreements with record
labels to become a streaming service.

16. SoundCloud’s
Advantage
➢ SoundCloud’s large amount of
current users
➢ Unique music selection
➢ Paying large royalties
➢ Larger royalties attract more
artists’ catalogues

17. Suggestions
● Many people get out their new music so be careful not to
forget about who made SoundCloud what it was.
● Offer student discounts or family discounts like Spotify.
● Improve the app so it is not so cumbersome.

18. Questions
Will independent artists be paid out the same royalties as
artist signed to major labels?
What research was found to lead to the decision to stream?
What is the projected revenue from streaming?

19. Works Cited
Sisario, B. (2016, March 29). SoundCloud Starts Subscription Plan, Taking On
Spotify and Apple. Retrieved March 31, 2016, from
http://www.nytimes.com/2016/03/30/business/media/soundcloud-starts-
subscription-plan-taking-on-spotify-and-apple.html?ref=media