Trading Sounds In Exchange For Lost Dollars
When SoundCloud came along in 2007, I was not excited at all, I did not get the point. In my opinion, it did not have a place and I would always get it confused with an earlier music platform for producers called Soundclick, launched in 1997. It needed time to grow, time to build a niche market and eventually that is exactly what it did.
Founded by a Swedish sound designer Alex Ljung and Swedish artist Wahlforss, the site was initially intended For musicians to share their compositions with each other. After some hands-on results, some word of mouth promotion and hard work, it became the go-to source for musicians to distribute their sounds.
Unfortunately, 2017 proves to be the breaking point for a long haul of financial problems for the social music site. An obvious sign of troubles on the horizon is the most recent departure of COO Marc Steigel and Finance Director Markus Harder. SoundCloud reps claim the 2 executives felt it was just time to move on to something different, no further information has been revealed.
CEO Alex LJung said in a recent statement “the risks and uncertainties we are faced with may cause the company to run out of cash before December 2017”. Still, under there the private umbrella with 300 employees, Soundcloud revenue grew a little over 21.6% in the year 2015 but its net losses were up by 30.9%, making it even more difficult to inspire confidence.
SoundCloud is holding on for dear life with the fate of the company being solely based on the success of their most recent streaming subscription service, SoundCloud Go. SoundCloud supposedly valued itself at $1 billion US during its failed sale to Spotify, now with Googles careful consideration of acquiring the company for only half of that, only time will tell what the cards hold for the music streaming cloud.