MUSIC INDUSTRY BLOG

Andrew Dubber interviews Dave Haynes, SoundCloud’s UK manager.

SoundCloud, an online music collaboration and large music file management platform, has secured a €2.5 million ($3.3 million) funding round led by Doughty Hanson Technology Ventures.  Details on TechCrunch.

P2P streaming music service, Grooveshark, has launched an artist promotion initiative – much like the track placement scheme Jango conceived of – as a means for artists and music promoters to purchase plays on its platform, a direct advertising approach that makes sense.  The Gainesville, Florida, company of approximately 40 young entrepreneurs has created a music service that rivals that of Last.fm and Pandora, the two major players in legal music discovery and ‘free’ music streaming.

Grooveshark claims to have deployed a legal music discovery and consumption model, providing its users with a financial incentive to share music, compensating artist/labels for their respective share of ‘broadcasts’, and maximizing illegal file sharing by financing its original sources.  Whether this service is actually legal or not is questionable and it appears that the company has created an expensive model to sustain on ad revenues alone.  However, they’re coming through on some very interesting marketing features for small budget music marketing campaigns.  At its core, Grooveshark Artists offers pay-for-play audio realestate matched to its existing track recommendations and provides analytics tools for track placement optimization. 

In addition, it has partnered up with some of the most talked about music tech startups for music retail, licensing, funding, and more, including Bandcamp, Sellaband and TheNextBigSound, all under the Grooveshark banner which already includes a number of subsidiary services including Tinysong, a track link generating tool for viral distribution, and  Twisten.fm, a Twitter crawler that finds music-related tweets and links them to playable tracks.  All of this put together amounts to a powerful enterprise of do-it-yourself marketing and a 360 indie approach akin to ReverbNation.

SoundCloud is an online music collaboration and large music file management platform.  The company positioned itself as a digital music exchange offering but it’s so much more than that.  The SoundCloud audio player displays the waveform of the track, allowing listeners to view and intercept specific segments of the music and comment on it.  As an artist collaboration solution, artists can share, mix, and remix their music under the Creative Commons licensing designations, enabling the creative process to continue long after the master is ‘complete’.  I particularly like the fact that SoundCloud is a music-oriented digital distribution solution, making it super easy to send and receive music files within a community of producers, engineers, DJs, labels etc. who deal with hefty music files on a daily basis.