SoundCloud has long been one of the most popular channels for sharing music, especially in underground and independent circles. While many depend on the site for networking and sharing their music, the soft spot users have for the company may not be enough to keep it afloat as it currently stands.
As reported, just a month after SoundCloud struck an immensely huge deal with Universal Music Group, the company’s latest financial filings suggest that things aren’t looking too good for the platform. The company’s latest published financial report shows that the company's overhead has increased far faster than its revenue in recent years.
The report continues to say that while the company has had “adequate resources to continue in operational existence for the foreseeable future,” losing $44 million is a tough setback to recover from.
The company may be forced to alter its business model in order to continue providing its streaming services to users, with a lot of pressure being put on the platform's subscription service and outside investors. The Financial Times reported that the auditor in charge, KPMG, said that the company's reliance on investment represents “a material uncertainty which may cast significant doubt on the company’s ability to continue as a going concern.”
In a statement, SoundCloud remained confident, saying that the figures from the report "reflect those of a company in a strong growth stage."
So while 18 million creative users are using the service to share over 110 million tracks to 175 million monthly active listeners, the company’s financial struggle is definitely an ongoing concern for those wearing headphones and three-piece suits alike. Millions would be impacted from any significant changes SoundCloud may have to implement in order to stay afloat as 2016 continues.
Hopefully we won’t have to picture an industry without SoundCloud and the company can pull through any financial difficulty.
BET.com is your No. 1 source for Black celebrity news, photos, exclusive videos and all the latest in the world of hip hop and R&B music.
TRENDING IN NEWS