Will SoundCloud’s Finances Force It To Shut Down?Friday, February 12th, 2016
Alan Cross points us to this article from FactMag stating the SoundCloud, one of the most popular online services for music creators, may be in a lot of financial trouble:
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.
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