SoundCloud
Audio distribution platform allowing users to upload, share, and stream music and podcasts.
PE-OWNED
Acquired by KKR2017-08-11
What Made It Great
User-generated audio content platform with independent artist community
What PE Will Likely Do
SoundCloud will likely see significant cuts to its content moderation and curation teams, leading to more low-quality, inappropriate, or copyright-infringing content on the platform
The platform's discovery and recommendation algorithms will likely degrade, making it harder for users to find new music and podcasts they enjoy
SoundCloud will likely implement or increase paywalls, limiting free access to content and forcing users to pay for features they previously had for free
The overall audio quality of streams and uploads will likely decrease as SoundCloud cuts costs on server infrastructure and bandwidth
Expected Timeline
“0 to 6 months months”
Acquisition announced, with promises of 'investment' and 'growth'; first round of layoffs in content moderation and curation teams
“6 to 12 months months”
Paywall implementation or expansion, reduction in server capacity leading to lower audio quality, recommendation algorithms become less effective
“12 to 24 months months”
Significant decline in content quality and user experience, as moderation issues and discovery problems continue to worsen
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Consider alternative music and podcast platforms that prioritize content quality and user experience over cost-cutting
Advocate for SoundCloud to maintain its commitment to supporting independent artists and the broader audio creator community
Be prepared for potential changes to SoundCloud's pricing and subscription models, and evaluate whether the service still provides value for your needs
Alternatives
Look for family-owned or employee-owned businesses