SoundCloud needs more money, or it may sell at a fire-sale price – Recode (Mar 11, 2017)
SoundCloud is beginning to look a lot like Twitter, another service which has lots of active users but which seems to be struggling to find a business model that can drive it toward profitability. In SoundCloud’s case, that has apparently meant it’s struggled to raise money over the past few months, and a possible acquisition by Spotify also seems to have fallen through. On paper, SoundCloud is in a hot area – music streaming – but of course even for the largest player in paid streaming (Spotify) it’s not yet profitable. Paid streaming has been great for the music labels, which have seen a turnaround in their fortunes over the last couple of years as a result of its growth, but not yet as good for the actual providers. SoundCloud is in an even worse position, being mostly a free provider, although it’s tried to turn up its paid services in the past year or so. I think the most likely outcome for SoundCloud at this point is an acquisition and absorption into something bigger, most likely Google.
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