Feb 13, 2016
SoundCloud may be inevitably running the end of its course. Earlier this week, an official report was released via Music Business Worldwide, showing that the music streaming platform's annual revenues are well bellow net costs. Losses started at $1.7 million in 2010, but spiked to a jaw dropping $44 million by 2014. In the past five years alone, the company has fallen under roughly $84m, with only $41 in profit.
Yikes. So what has been done since 2014?
Well after crunching the figures, SoundCloud initiated numerous investments to recoup their millions worth. In June last year, the company signed over 20,000 licensing deals with independent labels. And later this year, a optional subscription service will launch for its 175 million monthly users.
But despite these efforts, and not to mention the utilization of $137m in funding, will it be enough to fuel SoundCloud's lifespan? According to SoundCloud: yes. But to the public: maybe not.
The company’s accounting division stated, “the Group will have adequate resources to continue in operational existence in the foreseeable future.” But not are all entirely convinced. Financial Times auditor KPMG believes their material uncertainty will work against their sustainability. But only time will tell where SoundCloud's future is heading.