SoundCloud’s Future Bleak After Reporting $44m Losses
Throughout the last couple of years, SoundCloud has began attempts of monetizing their popular music platform by striking deals with record labels and music groups, including Merlin, a “Global Music Rights Agency” representing over 20,000 independent labels, Warner Music Group, and more recently with giants Universal Music Group.
A recent alarming Music Business Worldwide report, however, has shed light as to SoundCloud’s overheads and how those figures are by far out-shadowing the company’s revenue of recent years. The company’s 2014 financials paint a clear picture: While revenue reached $17.35m, the company’s losses were reported at $44.19m with employee wages increasing 42.5% to 20.3m – an average of $90,785 wage per employee. The report goes on to further specify that “in the three years from 2012-2014, SoundCloud lost almost €75m – but only brought in €37m in income.” Read more
