SoundCloud shutdown: What happens to Africa’s streaming musicians?

The streaming platform has been a major resource for music lovers seeking an alternative to mainstream radio. For these set of music fans, SoundCloud brings alternative music—especially as artists without the budget for regular promotion regularly release music using the platform.

Alternative acts like Tomi Thomas, Odunsi the Engine and Tay Iwar, all based in Nigeria, have built a healthy following primarily through the platform. Others like Niniola and Nonso Amadi have used it as they build a bridge between online streaming and the mainstream. It is uncertain what might happen to the careers of some of these acts should the platform shut down services. In some ways, the possible closure of SoundCloud echoes that of the six-second video platform Vine. When Vine was shut down by Twitter in January, makers of Vine videos lost a platform that provided connection to their audience.

One of the first indications as to the trouble with the Germany-based SoundCloud was a statement issued on 6 July by co-founder Alex Ljun stating that a massive lay-off had taken place. “[W]e need to ensure our path to long-term, independent success,” a part of his statement read. “And in order to do this, it requires cost cutting, continued growth of our existing advertising and subscription revenue streams, and a relentless focus on our unique competitive advantage—artists and creators.”

The cuts, which amounted to 173 SoundCloud staffers losing their jobs, was then said to present an incomplete picture of the trouble at the company as reported by the Techcrunch website.

“[S]ources at SoundCloud [say] that founders Alex Ljung and Eric Wahlforss confessed the layoffs only saved the company enough money to have runway “until Q4”—which begins in just 80 days,” states a Techcrunch report published on 7 July.

SoundCloud has responded to the claims by Techcrunch saying that the company “is fully funded into the fourth quarter. We continue to be confident the changes made last week put us on our path to profitability and ensure SoundCloud’s long-term viability.”  

SoundCloud’s confidence in its own ability to head towards profitability doesn’t seem to be shared by its users. While American up and coming act Khalid expressed a somewhat farewell gratitude—“thank you so much @SoundCloud for giving me an outlet to become creative, who knows where I'd be without you”—others like Lady Donli, a popular act in the Nigerian SoundCloud circle, seem to see the end.

“Thank you for existing @SoundCloud,” she tweeted on 12 July, apparently unaware of the company's troubles. “SoundCloud wants to give me hypertension,” she wrote a day later, adding that “Really if SoundCloud shuts down I’m done releasing music.”

There might be a chance that Lady Donli and artists in a similar position need not worry as one global popstar has volunteered assistance. “I’m working on the SoundCloud thing,” Chance the Rapper tweeted. The American is yet to say anything more, but perhaps Soundcloud users can hope.