SoundClound Commercialization Disappoint Its Loyal Users

SoundCloud commercialization made its loyal users unhappy. As it shifted away from its original platform, some confusion regarding copyright policy has caused trouble for its original power users. On the other hand, SoundCloud has not been able to enter commercial music industry yet.

Business Insider reported to have been speaking to multiple users and independent record label who became the earliest users of SoundCloud. They said that SoundCloud has strayed from its earlier focus of supporting DJs and now shifted its focus on high-profile users and licensed music. DJs and independent record labels as original users feel that it is now unfairly removing content based on a confusing policy on copyright.

Liana Rosenberg, a London DJ who has been a SoundCloud user since 2009. She told Business Insider that she paid for SoundCloud Pro account that allows her unlimited storage to upload her mixes and giving her analytics as well. However SoundCloud started to remove her entire mixes without sufficient explanation. She is now stopping to share music on SoundCloud because of the confusing copyright policy. She said, "Effectively all my work and the plays on those mixes are now lost forever."

SoundCloud was founded in 2007 by Swedish musicians, Alexander Ljung and Eric Wahlforss, who initially aimed to allow musicians to share their recordings in the website. Three years after its inception, SoundCloud reported of having one million subscribers. As of today, its users are estimated to reach more than 40 million that are registered and 175 million listeners a month. However, as SoundCloud grew bigger, it has to face big players in the music industry and follow the commercial game.

In order to prepare SoundCloud to enter commercial music industry, it hired Raoul Chatterjee, digital entertainment veteran to lead SoundCloud's European industry relations. Chatterjee was a former head of Warner Music UK's commercial division in 2010-2012, who manages all commercial relationships with retailers and digital services including artists like Michael Bublé, Ed Sheeran, and Paolo Nutini.

According to one UK music biz insider,"If SoundCloud's mission is to form closer links with music rightsholders and develop a mutually beneficial business strategy, I can't think of many people better than Raoul for the job."

The Guardian also pointed out how SoundCloud faces a battle for its soul. The Guardian said that in 2015, SoundCloud has hit crossroads: in facing both a court battle and tussles with the world's biggest music corporations and disgruntled users. This will make SoundCloud to go fully licensed, same as other streaming services before.

SoundCloud now must face a hard decision of whether to comply to commercial music industry or stay loyal to its original customers. It is a tough decision to make.