SoundCloud has announced the acquisition of Nina Protocol, a decentralised music platform that allowed independent artists to sell music directly to fans. The platform, which was founded in 2021 by Jack Callahan, Mike Pollard, and Eric Farber, enabled artists to operate their own digital storefronts without relying on traditional streaming platforms. Nina Protocol used the Solana blockchain for fast, low-cost transactions and Arweave for permanent decentralised storage of music files and metadata.
The deal brings Nina Protocol's artists, editorial archive, and music discovery tools to SoundCloud, which plans to integrate them into its platform. This is SoundCloud's first acquisition since its purchase of AI music company Musiio in 2022. The acquisition comes just months after Nina Protocol announced it would shut down its platform, citing an inability to establish a sustainable business model.
For Nina Protocol artists, SoundCloud is offering a migration tool to transfer their work to its platform. Additionally, artists will receive a complimentary SoundCloud Artist subscription through the end of the year, which includes monetization features and audience growth tools. The acquisition marks a significant expansion of SoundCloud's platform for independent musicians.
The deal has implications for the music industry, as it demonstrates a growing trend towards decentralised music platforms. Decentralised platforms allow artists to retain more control over their music and revenue, and are seen as a potential alternative to traditional streaming platforms.
UK music industry experts have welcomed the acquisition, citing its potential to boost independent artists' careers. However, some have also raised concerns about the impact on traditional streaming platforms and the potential for further consolidation in the industry.