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subscription tiers more appealing

  SVp of Entertainment, AOL Kerry Trainor attends the 2011 TV Summit presented By Academy Of Television Arts & Sciences Foundation & Variety at Renaissance Hollywood Hotel on February 15, 2011 in Hollywood, California. (photo by Todd Williamson/WireImage)

  For now, music and other audio saved on SoundCloud is safe. But the company will need to find a way to make its subscription tiers more appealing and scale up its advertising despite having much less staff to drive the changes. If it can't, SoundCloud could be back begging for cash in a year.

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  The new management should provide some additional confidence. I've interviewed both Ljung and Wahlforss in the past, and neither had answers to the big questions facing SoundCloud about its product direction, business model and the spurious copyright takedowns that have eroded its trust with musicians.

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  Trainor may be able to institute some more discipline at the startup. He was the CEO of Vimeo from 2012 to 2016, and has poached his former COO there to help run SoundCloud. They helped Vimeo fend off bigger rivals like YouTube by doubling down on what was special about the service: a focus on high-quality artful film rather than amateur viral videos. That experience makes Trainor a great fit to lead SoundCloud, which is fending off bigger rivals like Spotify and Apple Music.

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  SoundCloud's best bet isn't to battle them directly, but double down on the user-uploaded indie music scene, including garage demos, DJ sets, unofficial remixes and miscellaneous audio you can't find elsewhere. Whether it stays independent long term or tries to seduce an acquirer, SoundCloud will benefit from spotlighting its unique community of creators and hardcore listeners.

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