When you upload audio to Soundcloud, they ALWAYS re-encode it for playback.
If you upload a wonderful-sounding MP3 file, they will AGAIN re-encode it to AAC 256 kbps. Even if you upload an AAC 256 kbps, which apparently is the format they want, they will AGAIN re-encode it as another AAC 256 kbps.
So, you should always upload uncompressed files to Soundcloud – for instance WAV, FLAC, AIFF, or ALAC because re-encoding an already compressed file will degrade the audio quality significantly due to generation loss.
If you have previously uploaded your tracks to Soundcloud in a lossy format, you can re-upload your uncompressed tracks by following these steps.
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