Recently, Soundclousd has been struggling to stay alive. Over the course of 2 years, the company has lost over 70 million dollars, putting them in serious financial trouble.
While Soundcloud has more than 200 million users, they still aren’t making enough profit. The average revenue per user is around 11.2 cents, which isn’t much. Rivals, Pandora and Spotify both make about 11 to 27 dollars per user in comparison.
Because of these recent struggles, the company raised $77 million, and struck deals with Universal Music Group and Warner Music Group. Still, it is unclear if these efforts will be enough to keep Soundcloud running.
One of the company’s biggest flaws is their lack of an official subscription service. Competing music companies like Pandora, Spotify, and now Apple Music all have this option that Soundcloud has yet to take on. However, it is rumored that after a long wait, they will official launch a subscription option for users soon.
Soundcloud started in 2007 as service that would allow users to upload, listen to, and share music. They also highlighted themselves as a social media service where you could create your own personal profile and interact with other users. For many years Soundcloud was an innovative light in a generation that longed for more online music options, and even as the company battles money issues, they have remained positive.
Soundcloud recently released a statement to FACT in which they shared that their figures, “reflect those of a company in a strong growth stage.” They also added that, “over 18 million creators are using the platform, sharing well over 110 million tracks, and reaching 175 million monthly active listeners.” Even still, the company continues to spend more than they make, and the numbers keep moving in the wrong direction.
With this in mind, Soundcloud is not dead yet. Currently many users still take advantage of Soundcloud’s services, even as they continue to struggle commercially. The top artists on Soundcloud as of November 2015 include hit makers like Calvin Harris, Skrillex, and Kygo.
It is unclear what the future will hold for Soundcloud. Company spokeswoman, Brielle Villablanca, stated, “We’re focussing 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.”
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