SoundCloud – launched in 2008 – has been a seemingly rising force in the music streaming business. It’s used by millions of people around the world to stream their favorite known and unknown artists. It’s also used as a great place to discover new music that doesn’t get the shine of the more mainstream services.
It’s a great service and a hell of a lot of people would really hate to let it go. But that might just happen in the not-so-distant future.
SoundCloud reported that it lost OVER $50 MILLION last year.
Here’s what reps had to say:
“Our overhead base has increased faster than our revenues,” admits SoundCloud in the filing first reported by Music Ally. “After making inquiries, the Directors have concluded that they have a reasonable expectation that the Group will have adequate resources to continue in operational existence for the forseeable future,” the filing continues “However, the Directors have concluded that there are material uncertainties facing the business.”
The company says it’s going to launch a brand new paid streaming service and paying artists/labels more than it currently does.
The company raised a bunch of money this year (it also raised $60 million in 2014) but says that it will need more capital to continue future operations.
This would really suck and I hope the company can turn things around because it’s a great service.