Twitter’s $70 million SoundCloud investment is officially wiped out

Jack Dorsey invested in the music streaming service in 2016; last year he wrote off the deal.

One more reminder that digital music remains a very, very difficult place to make money: Twitter has written off a $ 70 million investment it made in SoundCloud, the music streaming service.

Twitter put the money into SoundCloud in in 2016, via its Twitter Ventures unit, in a deal that valued the company at $ 700 million. Now Twitter, via its 2017 annual report, says it has written off $ 66.4 million it invested in SoundCloud because that money is “not expected to be recoverable within a reasonable period of time.”

Variety first reported the news. For context: Twitter generated revenue of $ 2.4 billion in 2017, and ended the year with $ 4.4 billion in cash and short-term investments.

Twitter’s SoundCloud writedown isn’t a surprise, since almost all of SoundCloud’s existing investors were crammed down in a last-ditch funding deal last summer, which also brought in a new management team.

But it should be a formal coda to Twitter’s on-off infatuation with SoundCloud. Two years before the investment, Twitter had looked at buying SoundCloud for more than $ 1 billion, but didn’t.

And it’s a reminder that even though consumers have embraced free and paid music streaming services, the companies that run those services generally aren’t making a profit.

For giant tech guys like Apple and Google who run streaming music as a side business, that’s probably OK. For standalone companies like Pandora and Spotify, that’s not (reminder: Spotify is planning on going public in the next couple months).

Meanwhile SoundCloud, which had been pushing a $ 10-a-month subscription service like the one Apple and Spotify offer, is changing its strategy.

The new plan, as outlined by CEO Kerry Trainor at our Code Media conference this month: Focus on a more limited $ 5-a-month plan, as well as a renewed emphasis on a subscription service SoundCloud has always sold to music creators, producers and other prosumers.

Here’s my Code Media chat with Trainor:

Recode – All

How to Use Spotify, SoundCloud and Pandora on HomePod

As you might have already read, HomePod’s voice assistant functionality only works with Apple Music. If you want to speak into the air and you want your smart speaker to start playing some music, you’ll have to sign up for Apple Music. But what if you want to play some music from Spotify, SoundCloud or Pandora? Or you want to listen to podcasts from TuneIn or Overcast? There’s AirPlay for that. Continue reading
iPhone Hacks | #1 iPhone, iPad, iOS Blog

How to Stream Spotify, Pandora, and SoundCloud to HomePod

How to Stream Spotify, Pandora, and SoundCloud to HomePod

The verdict is out! HomePod has got the best sound and is fully capable of toppling the numero uno status of Amazon Echo. But that doesn’t mean Apple’s smart speaker doesn’t have any drawback. Currently, the only music service you can control using your voice is Apple Music. And, to stream Spotify, Pandora, SoundCloud or any music app to HomePod, you need to use AirPlay.

Luckily, beaming music from iPhone to HomePod is dead simple. And if you have used it to stream audio or video wirelessly, you may already be pretty much aware of it. Read on to find out how to AirPlay any music streaming app to HomePod.

How to Stream Spotify, Pandora, and SoundCloud to HomePod

How to AirPlay Third-Party Music Streaming App to HomePod

Before getting started, make sure to enable Bluetooth on your iOS device. Settings → Bluetooth. Alternately, swipe up from the bottom of the screen to bring up Control Center. (On iPhone X, swipe down from the top right corner of the screen to access Control Center.) Then, tap on the Bluetooth button to turn it on. Besides, make sure your iOS device is connected to Wi-Fi.

Step #1. First off, swipe up from the bottom to bring up Control Center. On iPhone X, swipe down from the upper right corner on iPhone X to access CC.

Step #2. Now, select audio options icon in the upper right corner of the Now Playing control panel.

Step #3. Next, tap on your HomePod.

Voila! Now, enjoy the music in its full-fledged form.

How to Stop Streaming Third-Party Music Services on HomePod

Once you have had a long run with your favorite third-party music app and don’t want to stream it to the smart speaker, you can easily stop it.

Step #1. Bring up Control Center on your iOS device.

Step #2. Now, tap on audio options button located in the upper right corner of the Now Playing control panel.

Step #3. Next, you need to tap your HomePod.

That’s done!

Now, the music will return to your iPhone. If you wish to continue to jam along, take the full advantage of Apple Music to stream music directly on the voice-based speaker.

Have your say:

As per the latest report, Apple Music currently has 36 million paying subscribers around the world as compared to 70 million subscribers of Spotify.

The tech giant has confirmed that its music-streaming service is growing at a faster pace than Spotify in the United States. The company has further added that it could soon overtake the service in popularity in the country.

Though I’m pretty happy with Apple’s music service, I would be really glad if the company allowed to directly stream even third-party music apps to the voice-enabled speaker. What’s your take on it?

You might want to refer these posts as well:

Enjoyed reading this article? Download our app and remain connected with us via Facebook, Twitter, and Google Plus to read more such stories.

To fix SoundCloud, it must become the anti-Spotify

 Startups die by suicide, not competition. It wasn’t that anyone was stealing SoundCloud’s underground rappers, bedroom remixers, and garage bands. SoundCloud stumbled because it neglected these hardcore loyalists as it wrongly strived to usurp Spotify as the streaming home of music’s superstars. But four months ago after laying off 40% of its staff, SoundCloud scored a… Read More
Mobile – TechCrunch

SoundCloud has one last chance to monetize — here’s what it should do

Things are looking up for SoundCloud, who have weathered a tumultuous summer. They came out with an SOS funding round of $ 170M and a new CEO, Kerry Trainor, formerly of Vimeo. Now Trainor has announced the newest addition to the platform — increased playlist statistics for artists. Improving analytics for artists is a major step forward to making the music platform a viable distribution channel for existing artists. Without the artists, there would be no SoundCloud to speak of. Yet it doesn’t tackle one fundamental problem that got them in this pickle in the first place — the business model.…

This story continues at The Next Web
The Next Web

3 things SoundCloud should do to stay afloat

SoundCloud gave music fans quite a scare last month when it laid off nearly half of its staff – people thought the indie music platform was going to go belly up in a matter of weeks. Luckily, it got a new lease of life last week when it scored a $ 170 million investment that should help keep the lights on for a good while. The deal also mandated that CEO Alexander Ljung would be replaced by Vimeo exec Kerry Trainor; Ljung will stay on as chairman of the board, and Trainor will be joined by Vimeo’s Michael Weissman in the…

This story continues at The Next Web

Or just read more coverage about: SoundCloud
The Next Web

SoundCloud plans to replace its CEO as part of a new funding deal

Investors want to replace founder Alex Ljung with former Vimeo CEO Kerry Trainor.

Investors want to replace the CEO of SoundCloud, the troubled music-streaming service, as part of a new round of investment.

Under terms of a proposed funding deal circulated this week, former Vimeo CEO Kerry Trainor would run SoundCloud in place of founder and current CEO Alex Ljung, who will stay on as chair of the company’s board. Trainor would also bring in a new chief operating officer, according to investor documents that lay out details of the new round.

SoundCloud plans on raising around $ 170 million, in a deal that would value the company at $ 150 million prior to the new investment. Most of the new money would come from Raine Group and Temasek.

In the past, SoundCloud had valued itself at $ 700 million, and in 2014, the company thought it could sell itself for more than $ 1 billion to Twitter. Last year, it also talked to rival streaming service Spotify about a sale.

I’ve asked Ljung, Trainor and SoundCloud PR for comment. Trainor left Vimeo, IAC’s video service last year. Last month, former Vimeo general manager Anjali Sud took Trainor’s old job.

The last time I wrote about SoundCloud, back in March, I reported that the company was struggling, looking for money, and that investors thought the company might go for $ 250 million — about the amount of money SoundCloud had raised over its lifetime.

Since then, things have gotten worse: Last month the company laid off 173 people — 40 percent of staff.

The new funding would be used in part to pay off SoundCloud’s existing debt, including a $ 70 million credit line it took on in March, and would dramatically reset SoundCloud’s cap table.

As Axios’s Dan Primack noted earlier, Ljung has told existing investors that if they don’t accept the new funding proposal, he “suggests the company would not be able ‘to continue as a going concern.’”

Recode – All

SoundCloud faces do-or-die vote by investors

 SoundCloud will soon collapse if investors don’t vote for a rescue funding round tomorrow. The stumbling music streaming community site had to suddenly lay off 40% of its staff last month. Now it’s asking investors for $ 169.5 million at a pre-money enterprise valuation of just $ 150 million. That’s a steep drop from the $ 700 million valuation of its previous rounds. Read More
Mobile – TechCrunch

Sick of SoundCloud? Anchor offers podcast transfer with free hosting

 SoundCloud is on shaky financial footing, saying it only has enough money to last a few more months unless someone buys or invests in it. That’s sure to cause anxiety in content creators with their life’s work stored on SoundCloud. Now some new startups are nipping at SoundCloud’s heels by focusing on podcasting in ways the music streaming service never did. Anchor is a… Read More
Mobile – TechCrunch