SoundCloud: Reinventing the Independent Music Platform

SoundCloud is not just a music streaming app — it is a platform that enables independent artists to upload, promote, and share audio content. The actual product is this community of creators and listeners, connected through tools and social features that empower discovery and engagement.

Growth challenges arise when the product does not clearly separate user segments, lacks content categorization, and fails to balance the needs of creators and consumers. These design and strategic gaps limit SoundCloud’s ability to scale beyond niche audiences.

If you were the PM, your job would be to clarify the product’s core value, solve the growth blockers with targeted strategies, and structure the product portfolio and team to serve both sides of the marketplace effectively.

SoundCloud’s multi-sided platform is its defining product

SoundCloud was founded in 2007 in Stockholm to serve a unique need: a place for waiting-to-be-discovered music creators, mostly independent artists and DJs, to publish their work without gatekeepers. This mission shapes everything about the product.

The platform operates on a freemium model with two key revenue streams: subscriptions and advertising. Its two interdependent user segments are:

• Creators: Musicians, DJs, podcasters who upload tracks, mixes, and podcasts. They rely on SoundCloud’s tools to promote their music, engage with listeners, and analyze performance.

• Listeners: Consumers who discover and enjoy a wide variety of audio content, especially alternative and underground genres like rap, reggae, and techno.

This multi-sided nature means the product is not just the streaming interface but also the ecosystem of community features, creator tools, and engagement mechanisms.

The actual product is the network of independent music creators and their audiences — the platform that enables content creation, distribution, and social interaction.

This contrasts sharply with Spotify, which focuses on mainstream licensed content and acts primarily as a music player. Spotify’s product centers on catalog breadth and playback experience. SoundCloud’s product centers on creator empowerment and community.

SoundCloud’s innovations lie in creator tools and social engagement

SoundCloud’s turnaround in 2017, after near bankruptcy, stemmed from a renewed focus on creators. Hiring Vimeo’s ex-CEO Kerry Trainor marked a strategic shift: invest in tools that help creators promote and monetize their content.

Unique product innovations include:

• SoundCloud Pulse: A mobile app for creators to track stats, interact with fans, and share tracks on the go.

• Social features: Listeners can comment on specific moments in tracks, offering real-time feedback and building community engagement.

• Support for mixes and podcasts: Unlike Spotify, SoundCloud allows DJs to upload mixes, which are integral to its niche appeal.

These innovations reinforce the platform’s identity as the first community of independent music creators.

Growth is restricted by product complexity and unclear user segmentation

From the listener’s perspective, SoundCloud’s product experience has notable caveats:

• Poor content categorization: Tracks, playlists, mixes, and podcasts are not distinctly laid out, making discovery difficult.

• Confusing user types: The platform does not clearly differentiate creators from listeners in the UI or experience, which dilutes engagement.

• Social features underleveraged: Although commenting exists, many users find it hard to navigate or participate meaningfully.

These issues limit SoundCloud’s appeal beyond its core niche. Without clear personas and tailored experiences, scaling to a broader audience is difficult.

Moreover, SoundCloud’s freemium model depends heavily on converting free users to paid subscribers. The lack of a compelling, differentiated premium offering hampers monetization.

The trap is treating all users as one homogenous group rather than designing for distinct creator and listener journeys.

Strategies to unlock growth and distinct brand identity

To overcome these barriers, the product strategy must:

• Clarify and separate user experiences: Design dedicated interfaces and flows for creators and listeners. For example, a creator dashboard with promotion and analytics tools, and a listener app optimized for discovery and social interaction.

• Improve content taxonomy: Introduce explicit categories and layouts for mixes, podcasts, and playlists to simplify navigation and discovery.

• Enhance social engagement: Make commenting more visible and interactive, perhaps gamify fan interactions to build community.

• Refine premium features: Offer creator-centric monetization tools (e.g., fan subscriptions, exclusive content) and listener benefits (ad-free listening, offline access) that clearly justify upgrading.

• Leverage partnerships: Collaborate with brands (Asics, AXE) to create unique music-related marketing campaigns that increase visibility and user acquisition.

Building a distinct brand identity requires telling the story of SoundCloud as the home for independent creators — a place where underground music thrives and communities form organically.

Designing the product team for a multi-sided music platform

A product team at SoundCloud must reflect the platform’s dual focus:

• Creator Experience Squad: Focused on tools for uploading, analytics, promotion, and monetization. Includes UX designers specialized in creator workflows, data analysts measuring creator engagement, and engineers building APIs for integrations.

• Listener Experience Squad: Dedicated to discovery, social features, playlisting, and playback quality. This team optimizes the listener journey, from onboarding to ongoing engagement.

• Content & Community Squad: Owns content taxonomy, moderation, and community features like commenting and fan interactions.

• Growth & Monetization Squad: Responsible for subscription models, ad products, and partnership integrations.

This structure enables focused ownership of the different user needs and business levers, while coordinating on cross-cutting platform stability and scalability.

Shaping the product portfolio for creator and listener value

SoundCloud’s product portfolio should balance:

• Core platform: Free access to upload and listen, social features, basic analytics.

• Creator premium: Advanced promotion tools, detailed stats, monetization options (fan subscriptions, tipping), and exclusive content hosting.

• Listener premium: Ad-free listening, offline downloads, high-quality streaming, and early access to exclusive tracks.

• Partner integrations: Branded campaigns, merchandise stores, and music licensing tools.

This portfolio ensures both sides see clear value, driving engagement and revenue.

Test yourself: Diagnosing SoundCloud’s product challenges

Where to go next

• If you want to build multi-sided platforms: Platform Product Management
• If you want to learn product portfolio strategy: Managing Product Portfolios
• If you want to sharpen user segmentation skills: User Persona Development
• If you want to improve monetization in freemium models: Freemium Monetization Strategies
• If you want to lead product teams effectively: Building and Scaling Product Teams

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