Launch of SoundCloud Go
On March 29, 2016, Fortune reported that SoundCloud was another entrant to the paid subscription-based music streaming market. SoundCloud’s Go service, priced at $9. 99 per month, will provide both “amateur remixes, but also the artists’ official recordings,” similar to Spotify and Apple Music (AAPL).
According to the Fortune report, SoundCloud Go will have a catalog of around 125 million songs compared to a catalog of 30 million songs each for Apple Music and Spotify. SoundCloud Go has its music subscription apps on both Alphabet’s (GOOG) Android and Apple’s iOS devices.
SoundCloud’s Go service could also compete with Pandora
Pandora Media (P) has a music subscription service, Pandora One, priced at around $5 per month. Pandora already has a 10% market share of the radio listening market in the United States, and the company stated in its fiscal 2015 earnings call that it believes its subscription business will be worth $1.3 billion over the next five years.
SoundCloud Go’s service could put a dent in Pandora’s plans as SoundCloud Go provides an extensive catalog.
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