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Decision Making
By Shelby Brooks
The Article
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.
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.
SoundCloud
Paid Subscription
$10 per month
125 million songs
Ad Free
Offline Listening
SoundCloud
Free Subscription
Free
100 Million Songs
Ads
In-App listening
Decision Making
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.
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.
Theory Application
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.
Reasons Why
● Losing money is a
problem
● Loss of $24.5 million
● Desire to keep company
● Solution must be found to
maintain
Where does it
apply?
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.
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.
SoundCloud’s
Advantage
➢ SoundCloud’s large amount of
current users
➢ Unique music selection
➢ Paying large royalties
➢ Larger royalties attract more
artists’ catalogues
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.
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?
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

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Decision Making

  • 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
  • 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.
  • 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
  • 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