Soundcloud, one of the world’s foremost music-streaming platforms is in dire straits, according to reports. The company recently laid off 40% of its workforce and has enough money to only last until the beginning of Q4, which begins less than two months from now.
Founders Alex Ljung and Eric Wahlforss denied the report and spoke of the future of Soundcloud with more glowing terms. “By reducing our costs and continuing our revenue growth, we’re on our path to profitability and in control of Soundcloud’s independent future,” Ljung said.
The turmoil inside of Soundcloud has been well-documented, leaving many of the platforms users from aspiring artists to playlist curators whose material may very well be in limbo. In 2014, the Berlin-based company reported a loss of $44 million. The company found itself even deeper in the red in 2015 as it reported a loss of $52 million according to Music Business Worldwide. Soundcloud blamed the large 2015 deficit on “investing in technology, people and marketing, as well as securing complex licensing agreements with key music industry partners.”
The company released a subscription service, Soundcloud Go, for $9.99 a month on top of their already well-established free model which offers listeners access to 120 million songs, largely created by independent artists. Operating as the “Youtube of music” has yielded great response for Soundcloud. The vast collection of freestyles, bedroom remixes, podcasts and other material has been vital in not only launching careers but establishing Soundcloud as a paradise for both fans and creatives. The death of the platform would be a huge blow to independent musicians though streaming alternatives such as Audiomack have arrived in the past few years.
But without a defined strategy, one of streaming music’s giants could fall, leaving many creators without the same freedoms to upload content.