They're not supposed to turn a profit while complying with their rates. It's a way to make sure they stay in control of who is selling the music.
Re:What is going on with SoundCloud?
by jszymborski on Monday August 17, 2015 @10:55AM
(#10073391)
That's why we need something decentralised as torrents and as flexible and intuitive as Soundcloud.
P.S. Take a look sometime at ASCAP's requirements and fees/rates for digital music services -- it's insane. I don't know how any service could keep ASCAP placated and turn a profit.