SoundCloud Denies Claims of Forthcoming Closure
SoundCloud has responded to claims the company may be forced to close due to financial troubles, stating instead that it is in a “strong growth stage”.
The accusations came following a report published by SoundCloud, which showed the streaming service had made a lost over of €39 million in 2014, whilst only earning just over €17 million in revenue. Music Business Worldwide believed these figures cast “significant doubt” over the future of the company.
However, SoundCloud are refuting the accusations. In a statement the company has said the stats in fact “reflect those of a company in a strong growth stage,” and that in 2015 the company secured $77 million of capital from investors. SoundCloud says it is ” on a clear path to global success” and is focusing on “building a financially sustainable platform that our community can enjoy for years to come.”
Read the full statement from SoundCloud below:
SoundCloud filed its 2014 accounts with Companies House. Beyond the full-year financials for 2014, which reflect those of a company in a strong growth stage, they show that, in 2015, we secured $77m of incremental capital, some of which came from our existing investors, demonstrating their belief in the future of the company, and the rest of which is a flexible credit line from Tennenbaum Capital Partners, an attractive option for companies like SoundCloud, who have a solid credit rating and are on a clear path to global success.
Since we began, we’ve been building a completely unique platform. SoundCloud users can discover more creators, at all stages of their careers, than anywhere else, and more music and audio: over 18 million creators are using the platform, sharing well over 110 million tracks, and reaching 175 million monthly active listeners. Additionally, comScore recently listed SoundCloud as being the 8th most popular app among millennials based on usage in the US.
Over the past year, we’ve continued to bring partners from the music industry onto SoundCloud. We’ve signed deals with PRS and UMG/UMPG, to add to the nearly 200 deals we’ve already signed, including those with Warner Music, Merlin and NMPA, as well as MCNs and independent creators. We’re focusing on enabling creators to get paid for their creativity, and on building a financially sustainable platform that our community can enjoy for years to come.