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Mix of feelings as usual. I love soundcloud and am sad to see this, but they have in fact seemed to struggle to find a way to stay affloat. Their subscription service probably doesn't cover it.
What was the arrangement before?

The "Pro Unlimited" plan (which is an odd name for a basically working service) cost as much as Netflix ($12/month) which seems a little steep unless you're using this professionally then it is nothing.

I guess it seems like there's a gap now between basic/free (15 tracks/3 hrs total) and Pro (unlimited/$12 per month).

For example: "Casual Tier: $4/month, max 1x track upload per week, basic support, basic stats." A tier to try and build an audience then $12/month once you're established ("Pro" tier).

But maybe $12/month isn't that much and I am just out of touch. Just imaging a bunch of low budget teens who would love to make a go of this but cannot swing almost $150/year for it.

I guess YouTube/Twitch remains free, people could that instead until they're established.