Last week, MBW told you all about how SoundCloud is working to become more of an artist services company.
The current SoundCloud model has two distinct sides:
- (i) A user interface streaming service, which offers both ad-supported and subscription-based revenue streams (SoundCloud Go+); and
- (ii) A artist services business, where independent artists can not only upload their music directly to SoundCloud, but also distribute their tracks to competing services like Spotify. SoundCloud also offers additional tools and resources for independent artists under the Repost By SoundCloud brand.
Recently, SoundCloud launched a new top tier of artist service offerings, known as a “roster.”
Under these “roster” deals, particularly successful independent artists — including Lil Pump and Tekno — “sign” directly to SoundCloud, with the company making advance payments, investing in artist marketing, and more, just as it would. a traditional record company.
Today (February 22), SoundCloud upgraded this artist services business, via an intriguing joint venture with Solid Foundation, the management and creative services arm of QC Media Holdings.
QC Media Holdings is both owned and operated by respected music industry veterans Kevin “Coach K” Lee and Pierre “P” Thomas.
Lee, Thomas and their Atlanta-based Solid Foundation artist management team say they will work with SoundCloud to identify, invest in and nurture the careers of artists bubbling on the platform.
A press release from SoundCloud suggests that the joint venture will ultimately create “custom A&R programs for selected artists, including development, distribution and marketing and artist services.”
As part of the joint venture agreement, QC Media invested an undisclosed amount in SoundCloud.
Eliah Seton, President of SoundCloud said, “Coach K and P are two of the most influential voices in music, having identified, developed and grown some of the most successful hip-hop groups of our time.
“With this deal, we’re bringing together SoundCloud, the largest A&R source on the planet, with the creative genius of Coach and P.
“With this deal, we’re bringing together SoundCloud, the largest A&R source on the planet, with the creative genius of Coach and P.”
“We’re thrilled to partner with them in this innovative way, as together we amplify the voices of who’s next in music.”
Pierre “P” Thomas added, “With our years of street listening skills paired with SoundCloud’s endless stream of talent and powerful data indicating what’s authentically bubbling in the scene.
“I can’t imagine a better fusion of passion, intelligence and skill to create countless new paths for emerging artists. We are more than delighted with this partnership.
“Merging SoundCloud data with our proven way of cultivating and building artists will be a mix to be reckoned with.”
Kevin “Coach K” Lee
Kevin “Coach K” Lee said, “There’s nothing more important to our process than discovering new artists, so partnering with SoundCloud, one of the world’s largest talent hubs, is incredibly exciting for us. we.
“Their data merging with our proven way of cultivating and building artists will be a mix to be reckoned with.”
SoundCloud further suggests in its press release that the new JV “demonstrates [our] commitment to curating artist partnerships that provide flexibility for both artists and industry partners, with personalized and collaborative relationships aimed at empowering artists to own and control their rights and process creative”.
In addition to their management company, Coach K and P run record label Quality Control Music, which is a partner of Universal Music Group/Motown Records/Capitol Music Group.
Solid Foundation Management, LLC, a division of QC Media Holdings, Inc, was founded by CEO Pierre “P” Thomas and COO Kevin “Coach K” Lee in 2013.
Developed chart-topping artists on the Quality Control/Solid Foundation list have included Migos, Lil Yachty, Lil Baby, City Girls, and more.
MBW revealed last week that SoundCloud’s fiscal year 2020 annual revenue was €193.5 million (US$218.7 million), up 31% year-on-year. other.
The company’s gross profit in the same year rose 53% to 61.1 million euros ($69 million), while its operating losses fell significantly by 41% year-on-year to reach 15.4 million euros ($17.4 million).The music industry around the world