Soundcloud In Trouble?
Is music sharing behemoth Soundcloud in trouble? Music Business Worldwide certainly think so, with a new report casting “significant doubt on the company’s ability to continue as a going concern.”
Following on from the streaming services “landmark deal” with Universal Music Group last month, the companies recently published financial report for 2014 reveals that its overheads have increased faster than its revenue in the recent times, losing €39.14m over the course of that year. The report also reveals that Soundcloud was reliant on “further capital investment” to continue operating in 2015.
It’s not all doom and gloom though, the aforementioned deal with Universal promises to offer the company a host of new creative, commercial and promotional opportunities, including its long awaited subscription service, which appears more vital than ever to the business’s sustainability.