Jeff Ponchick, SoundCloud‘s Vice President, Head of Creator is exiting the company.
The exec revealed the news last week in a LinkedIn post, in which he wrote that, “After 7+ incredible years of Repost by SoundCloud & SoundCloud it’s time to step down”.
Ponchick co-founded and previously served as the CEO of subscription-based artist services platform Repost Network, which SoundCloud acquired in May 2019 for around $15 million.
Following the acquisition of Repost, in April 2020, SoundCloud launched its Repost by SoundCloud marketing and distribution platform, aimed at “serious artists who want to take their career to the next level”.
Ponchick served as Vice President, Head of Repost until late 2021, and was then promoted to Vice President, Head of Creator at SoundCloud.
Ponchick is at least the second high-profile executive to announce their departure from the company in as many weeks.
Last week, SoundCloud‘s VP Content Partnerships and Operations Raoul Chatterjee revealed that he’s leaving the music streaming company.
News of both Ponchick and Chatterjee’s exit from SoundCloud follows the company’s confirmation earlier this month that it’s in the process of reducing its global workforce by approximately 20%, blaming “challenging economic climate and financial market headwinds”.
SoundCloud’s creator-facing services business has accelerated since Repost was acquired back in 2019, with Repost playing a central role in the platform’s artist services strategy.
For its 2020 report, SoundCloud organized its business into two divisions:
(i) SoundCloud Network, which covered the firm’s main business inclusive of listener subscriptions to its streaming service plus creator subscriptions to its distribution/services business; and
(ii) ‘Creator Services’ which covered the gross royalties being pulled in by music distributed to other services by SoundCloud on behalf of artists signed up to Repost By SoundCloud and Repost Select.
(SoundCloud said that, from 2021 onwards, it’s organizing its business slightly differently, once again into two operating divisions: (i) Fans will cover ads and subscription money accrued by its consumer-facing streaming service; and (ii) Creators will pull together the subscriptions paid by creators to SoundCloud / Repost alongside the spoils of the monetization of their music on other platforms.)
Meanwhile, earlier this year, SoundCloud revealed in an expansive Billboard profile that it’s launching a new white-glove tier of service for indie artists; what it calls the SoundCloud “roster”.
The acts that make it into this tier will receive financial resources from SoundCloud, with some receiving meaningful levels of financial advances and marketing support.
MBW noted in February that while SoundCloud remains best-known as a consumer-facing streaming service (with over 300 million tracks and counting), it’s also been building a significant Creator Services operation, offering artists digital distribution (to multiple platforms), plus other beneficial services to boost their careers.
SoundCloud is banking its future on developing artists, and it all started with Repost. Now Repost’s founder is exiting the company.
“Grateful to all that were a part of this journey. From idea to working business to acquisition to post-acquisition and everything in between.”
In a LinkedIn post, Ponchick said: “After 7+ incredible years of Repost by SoundCloud & SoundCloud it’s time to step down.
“What’s next? I’m not entirely sure, but I’m looking forward to finally taking some time for myself while I figure out the next thing.
“If you’re an artist and need to get in touch with Repost you can always reach out to firstname.lastname@example.org or contact me directly and I will try my best to connect the dots for you. Now more than ever I trust in our team to continue on our mission of helping musicians make a living through their audience online.
“Grateful to all that were a part of this journey. From idea to working business to acquisition to post-acquisition and everything in between.
“Until next time, Jeff.”
Music Business Worldwide