SoundCloud Acquisition Imminent: Get your SoundCloud Account Ready

The past few months have been full of rumors of a Soundcloud acquisition. A deal fell through around 3 months ago where Twitter was considering buy them up for around $2 billion. Twitter backed out of the deal when they became nervous of the fact that the major record labels were not happy with the lack of licenses for most of the music on the service.

The difference now is that the three major record labels are buying into SoundCloud. A SoundCloud acquisition by Twitter will only happen if there’s licenses granted by the major record labels. The major labels will only grant licenses if they get a cut of the action. Their buying into SoundCloud is a way from them to get that action.

 

Screen Shot 2014-08-08 at 10.41.09 AMSoundCloud Acquisition: How it would work

Any potential SoundCloud acquisition would look very similar to the recent sale of Beats to Apple. In that deal, Universal cashed out their 14% interest in Beats to the tune of around $400 million.

With the three major labels buying into SoundCloud, and a sale to Twitter in the $2 billion range, the major labels could again see a big payout. And this payout will largely be from an investment of capital, they won’t have to actually do much of anything besides grant the license to their copyrighted music.

How a SoundCloud acquisition could benefit you

If you’re an artist on SoundCloud there a number of ways that this possible SoundCloud acquisition could help you out:

  • Licensing from the major labels can free DJs and remixers from the potential of lawsuits resulting from remixes/samples
  • Investment by the major labels could increase SoundCloud’s features, speed, and reach
  • Interest from major labels looking to use SoundCloud for recruitment could increase as the platform gains acceptance
  • A purchase by Twitter would further increase its reach, and greater integration with Twitter’s features could make it even easier to get your music out to the people

So any potential SoundCloud acquisition that starts with investment and interest from the major labels could very well lead to some useful and tangible benefits for your band and music career.

How to get ready before the SoundCloud acquisition happens

Screen Shot 2014-08-08 at 10.48.53 AMYour best time to capitalize on the possible SoundCloud acquisition is now, not after it happens or even while it’s in the process. You need to get your SoundCloud account up to par, and then push it past even your own expectations.

You’re going to want to look at:

  • The type of content that you offer on SoundCloud. If it’s all rehearsals of songs, half finished tracks and jam sessions, only your biggest fans would be interested. You’ll never catch the eye of anyone with that type of content.
  • The type of songs you’re offering. Even if you’re putting out complete and finished tracks, don’t be afraid to put your best songs on SoundCloud. Putting out a few b-sides that you thought weren’t good enough for an album isn’t good enough for anyone else either.
  • Where your play numbers are. You’re going to want to look at which tracks are your best and focus on them getting more plays. More plays = more signs to others that the track is good. You can try our SoundCloud plays service to get those first few plays as you build up your SoundCloud account.
  • How complete your presentation is. You’ll want a mix of finished songs, songs in progress, live cuts, and even some interviews. This gives any potential record label the chance to see all of you, rather than leaving it a mystery. In today’s online world where anyone can know nearly everything about you, why not head them off and offer it yourself?
  • Be sure that all of your imagery is displayed. Have a great header image, all of your album covers, and many photos of the band in various moods and locations. You never know just what image is going to speak the thousand words that a particular manager is looking for. If you already have the pictures, put them up!

Waiting until after any SoundCloud acquisition is finalized will leave you scrambling just like everyone else. Start working on your SoundCloud account now, take the above advice and take action with it, and you’ll be ready for any big SoundCloud acquisition news that comes out in the next few months.

As a bonus for those who have read this far, here’s on of my favorite tracks on SoundCloud right now:

Feature image via dandoo / Shutterstock
Contract image from Alastair