1. Introduction
SOUNDCLOUD
Ryan Kam

2. Introduction
October 2008
Launched by Alex Ljung
and Eric Wahlforss

3. Introduction
October 2008
April 2009
€2.5m Series A round led
by Doughty Hanson Tech
Ventures

4. Introduction
October 2008
April 2009
May 2010 1 million registered users

5. Introduction
October 2008
April 2009
May 2010
June 2011 5 million registered users

6. Introduction
October 2008
April 2009
May 2010
June 2011
January 2012
$50m round led by
Kleiner Perkins Caufield
& Byers

7. Introduction
October 2008
April 2009
May 2010
June 2011
January 2012
Today 40 million+ registered users

8. 0
5000
10000
15000
Soundcloud Pandora Spotify 8tracks Songza
SoundCloud leads all major internet streaming music services in
global web traffic
Sources: www.alexa.com as of 08/19/2013
Alexa Global Traffic Rank (lower is better)
Introduction

9. 0
5000
10000
15000
Soundcloud Pandora Spotify 8tracks Songza
200m unique
visitors per
month
Sources: www.alexa.com as of 08/19/2013
Alexa Global Traffic Rank (lower is better)
Launched
a decade
earlier
Introduction
Declining
“Curated” music:
not quite there
but rising fast
“Curated” music:
not quite there
but rising fast
SoundCloud leads all major internet streaming music services in
global web traffic

10. Why has SoundCloud
been so successful?
Introduction

11. Or, rephrased:
What makes SoundCloud
different from the
competition?
Introduction

12. Or, rephrased:
What makes SoundCloud
different from the
competition?
Introduction

13. Three things.
Analysis

14. Analysis
Popularity of electronic
dance music
Better features and
fewer restrictions
Unprecedented global
reach
Leading
share of
internet
streaming
music
market
+
Strong
growth
prospects

15. Analysis
Popularity of electronic
dance music
Better features and
fewer restrictions
Unprecedented global
reach
Leading
share of
internet
streaming
music
market
+
Strong
growth
prospects

16. Electronic dance music, often abbreviated to
EDM, is electronic music that is produced
primarily for the purposes of use within a
nightclub setting, or in an environment that is
centred upon dance-based entertainment.

17. Analysis

18. Analysis

19. DJ Mag’s Top 100 DJs
that have an active
SoundCloud account
*As of 08/19/2013
Analysis

20. DJ Mag’s Top 100 DJs
that have an active
SoundCloud account
*As of 08/19/2013
Analysis
SoundCloud is the
preferred channel for
DJs and producers to
connect with fans

21. Analysis
Popularity of electronic
dance music
Better features and
fewer restrictions
Unprecedented global
reach
Leading
share of
internet
streaming
music
market
+
Strong
growth
prospects

22. A polished interface allow for enhanced shareability, greater
customization, and a superior listening experience overall
Follow artists
directly or
users with
similar tastes
Tagging enables
easy “discovery”
of similar content
Tagging enables
easy “discovery”
of similar content
Follow artists
directly or
users with
similar tastes Continuous stream
of targeted user-
generated content
Analysis

23. Ads
Save and
revisit single
tracks
SoundCloud also has far fewer restrictions on how its users can
create and consume content
Restrictions
Skips
FF/Rewind
Who can
upload music
SoundCloud Spotify 8tracksPandora
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Other
nuisances
No Yes Yes Yes
None Yes –
pay to
remove
Yes –
pay to
remove
Yes –
pay to
remove
Listening
limits
None Yes –
pay to
remove
Yes –
pay to
remove
Yes –
pay to
remove
Analysis

24. Analysis
Popularity of electronic
dance music
Better features and
fewer restrictions
Unprecedented global
reach
Leading
share of
internet
streaming
music
market
+
Strong
growth
prospects

25. SoundCloud is available anywhere you can connect to the
internet
Pandora Spotify SoundCloud
Analysis

26. Pandora Spotify SoundCloud
SoundCloud is available anywhere you can connect to the
internet
Analysis

27. Pandora Spotify SoundCloud
SoundCloud is available anywhere you can connect to the
internet
Analysis

28. 40
40
20 100
0
20
40
60
80
100
120
EDM Features Reach Total
SoundCloud’s advantage stems primarily from its superior
features and usability, and the current popularity of EDM
Contribution to total competitive advantage, %
*Estimated
Competitive
advantage
generated by
listeners…
• Looking for new
releases posted first
on SoundCloud
• Frustrated by
paywalls and
instrusive restrictions
• Seeking to diversify
their tastes in music
beyond Top 40
Conclusion

29. Talk to me!
Ryan Kam, Student at Rotman Commerce
E: ryanplkam@gmail.com
T: 647 292 8175
Contact