General SoundCloud could be forced to close after $44m losses

[tom_mai78101]

A report casts “significant doubt on the company’s ability to continue as a going concern.”

SoundCloud struck a landmark deal with Universal Music Group last month, but its latest financial filings suggest the company is in dire financial straits.

As Music Business Worldwide reports, the company’s recently published financial report for 2014 reveals that its overheads have increased faster than its revenue in recent years.

While SoundCloud brought in €15.37m ($17.35m) in 2014, it lost a total of €39.14m ($44.19m). Employee wages during that period also increased 42.5% to €17.9m, meaning that the average wage per employee for that year totalled €79,980.

The report makes it clear that while the company had “adequate resources to continue in operational existence for the forseeable future,” SoundCloud was heavily reliant on “further capital investment” to continue operating in 2015.

Read more here. (Fact Magazine)

 

[Accname]

what the hell is soundcloud?
Like a cheaper version of youtube to mp3 converter?

 

[tom_mai78101]

what the hell is soundcloud?
Like a cheaper version of youtube to mp3 converter?

It's a community where artists share and promote their music around. Some even had their portfolios up.

 

[thewrongvine]

Soundcloud is great lol... It's huge in the music world. I use it all the time, both for personal work and to find other artists. A lot of the composers I've found for my films have been through Soundcloud.

So it's not like a youtube to mp3 converter. It IS a youtube for music. Think of it like an online portfolio for audio.

 

[FireCat]

Employee wage increased 42.5%
So It's gonna be all good. Right?!

 

[KaerfNomekop]

I'm curious what their employees do that warrants so much payment. Enforcing copyrights?

Personally I prefer Soundcloud to any other online music service because it has such a great diversity of original content that's easily accessible, even outside of a specific field/genre. It's also really easy to connect and communicate directly with artists there, kind of like a social network built around music.