On February 11, SoundCloud and SiriusXM Holdings announced that the leading audio entertainment company in the US, SiriusXM, invested a total of $75 million in Soundcloud. Notably, SoundCloud is the largest open audio platform in the world.
The music-sharing platform will use SiriusXM’s additional investment in order to accelerate its product development. It also aims to enhance the platform’s services that fuel its community of creators and listeners around the globe.
SoundCloud’s Chief Executive Officer Kerry Trainor said that the open audio platform’s three consecutive years of strong financial performance is a direct reflection of its success in terms of creator-led growth strategy.
Trainor also added that the company has an exciting roadmap. According to him, they will be focusing on deepening the connections between listeners and creators. Deeper relationships will fuel the discovery of creators, the growth of their career, as well as the evolution of music within SoundCloud.
The SoundCloud CEO also noted that they had built a great relationship with SiriusXM. This was done through SoundCloud’s extremely successful Pandora ad sales agreement. Besides, the audio entertainment company’s investment gave SoundCloud additional capital flexibility. This flexibility will accelerate the music-sharing platform’s vision. It will also help in taking advantage of the rising strategic opportunities.
Jim Meyer, the Chief Executive Officer of SiriusXM, also released a statement regarding the company’s investment on SoundCloud. According to him, the unique platform of SoundCloud serves a vital role in the music ecosystem today. New artists are discovered and build their fanbase in the said platform. On the other hand, more established musicians experiment and directly connect with their fans in very practical ways.
Meyer also added that SiriusXM admires the loyal and growing audience of SoundCloud, its reputation, and offering for creators. The leading audio entertainment company also respects SoundCloud’s popularity in global music communities. The company also believes that investing in SoundCloud is another opportunity that would allow them to continue creating value for the stockholders of SiriusXM. The said value will be gotten through investment and expansion in digital audio platforms.
The minority investment took place after the highly successful SoundCloud and Pandora ad sales relationship, which started in 2019. Notably, Pandora is a subsidiary of SiriusXM.
The agreement between the two companies allows brands and advertisers to buy SoundCloud’s US ad inventory directly through Pandora. This will improve the company’s direct sales capabilities, audio programmatic platform, and targeting data. Together, the combined US audience offering of SoundCloud and Pandora reachers over 100 million unique listeners. This combination creates the most extensive digital audio advertising marketplace.
The music-sharing platform is the global accelerator for music. It was able to grow its business by introducing new products, services, as well as partnerships. All of these empower audio creators and listeners' discovery.
SoundCloud, a platform that is driven by creators, continues to be the first place where musicians share their audio with listeners. It is also the first place where listeners discover new trends in music. Many of the most famous artists today started their careers on this music-sharing platform. These artists include Billie Eilish, Bad Bunny, Post Malone, Lil Tecca, Khalid, and many others.
This music-sharing platform set all-time highs for platform engagement, subscribers, creators heard, and revenue last year. It also ended 2019 by being the company that has the most robust financial performance in history. SoundCloud accelerated to a forward revenue run rate worth $200 million for the first time during the fourth quarter of 2019.
Under the terms of the agreement, SiriusXM has bought securities for a minority investment worth $75 million. On the other hand, the Board of Directors of SoundCloud will expand in order to include two individuals who are designated by SiriusXM.
SoundCloud’s financial advisor is the Raine Group, while Morrison & Foerster is its legal counsel. Meanwhile, the financial advisor of SiriusXM is Allen & Company LLC. The company’s legal counsel, on the other hand, is Weil, Gotshal & Manges LLP.
SoundCloud was founded in 2017. It aimed to empower music creators with the best tools, resources, and services that they can use to build and develop their music careers. Also, this music-sharing platform is the largest open audio platform. It was powered by a connected community of creators, curators, and listeners. This community is on the pulse of what is new, as well as the now and next of the music culture.
Moreover, SoundCloud has more than 200 million tracks that came from over 25 million creators. It is also accessible in 190 countries around the world.
There is no doubt that this music-sharing platform is the largest platform for music around the globe. Its popularity was able to give the best musicians a push to their careers. Some of the most sought after artists today, including Billie Eilish, Khalid, and Lil Tecca, first started their music careers on SoundCloud.
SoundCloud is undeniably here to stay. This ever-growing platform provides listeners and creators alike with the best offers. For listeners, there are various subscription plans that they can choose from to be updated about the new music trends. On the other hand, music creators within the platform can get revenue through the help of ads that play when listeners play their songs.
Sirius XM Holdings Inc. (NASDAQ: SIRI) is the US’ leading audio entertainment company. It is also the premier programmer and platform for subscription and digital advertising-supported audio products.
SiriusXM’s subsidiary Pandora, on the other hand, is the largest ad-supported audio entertainment streaming service in the US. These two companies reach more than 100 million people every month through their audio products.
Through Sirius XM Canada Holdings Inc., SiriusXM can also provide satellite radio as well as audio entertainment in Canada. Apart from its audio entertainment businesses, this music giant offers connected vehicle services to automakers and directly to consumers through the use of aftermarket devices.
Date: September 2, 2020 / Categories: Marketing, / Author: Joy P
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