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TranceAddict Forums > DJing / Production / Promotion > Production Studio > Soundcloud may be forced to close due to $44m losses!
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DJ RANN
Supreme tranceaddict



Registered: May 2001
Location: Hollywood....
Soundcloud may be forced to close due to $44m losses!

It seems soundcloud can't make the business work. The wages alone are more than their entire gross income

quote:
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.



http://www.factmag.com/2016/02/11/s...ort-44m-losses/

Old Post Feb-11-2016 21:17 
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tehlord
Supreme tranceaddict



Registered: Jan 2009
Location: Windsor

Those average salaries are lol

IT was a good ride boys, now eat sh1t and die


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Old Post Feb-11-2016 21:24  United Kingdom
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kosmotika
Supreme tranceaddict



Registered: Mar 2014
Location: Minneapolis, USA

Wonder what alternatives there are...I actually did like soundcloud and found it to be really useful for uploading and sharing my music.

Old Post Feb-11-2016 22:08  United States
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cryophonik
Boom shanka



Registered: Jan 2008
Location: Elk Grove, CA USA

Donald Trump should buy it, change the name to Trumpcloud, and change all the orange to gold.


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Old Post Feb-11-2016 22:20  United States
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AlphaStarred
-__---__-_-_-_-----_



Registered: Jul 2002
Location: Brooklyn, NY

That would suck. I was able to release stuff thanks to SC and also find lots of great music from many people. Hopefully this doesn't occur.

Old Post Feb-11-2016 22:44  Israel
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Storyteller
Supreme tracneaddict



Registered: Feb 2005
Location: The Netherlands

quote:
Originally posted by tehlord
Those average salaries are lol

IT was a good ride boys, now eat sh1t and die


IT still is, it is just music that isn't .
Also considering Spotify and Beatport are not profitable (as far as I'm aware), this isn't really a shocker and I'd be surprised to see them disappear in before 2018


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Old Post Feb-11-2016 23:21  Netherlands
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cryophonik
Boom shanka



Registered: Jan 2008
Location: Elk Grove, CA USA

They also just reached an agreement with Universal, leaving Sony as the lone holdout among the big labels. So, my guess is that the sky isn't really falling, but that also doesn't bode well for all of us little guys who made SC what it is today.


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Old Post Feb-11-2016 23:25  United States
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MSZ
kielbasaaddict.com



Registered: Jun 2005
Location: What

Where are they losing the money? Bandwith?

Old Post Feb-12-2016 00:24  Poland
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cryophonik
Boom shanka



Registered: Jan 2008
Location: Elk Grove, CA USA

quote:
Originally posted by MSZ
Where are they losing the money? Bandwith?


This article provides some explanation:

http://www.factmag.com/2016/02/11/f...ight-be-doomed/


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Old Post Feb-12-2016 00:29  United States
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MSZ
kielbasaaddict.com



Registered: Jun 2005
Location: What

I still dont really understand it, whatever fuck this im out.

Old Post Feb-12-2016 00:34  Poland
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DJ RANN
Supreme tranceaddict



Registered: May 2001
Location: Hollywood....

quote:
Originally posted by tehlord
Those average salaries are lol

IT was a good ride boys, now eat sh1t and die


That's the thing; the tech industry is like the English Premiership Football - it's all controlled by agents and recruiters who want silly money for any level of talent.

Some of the coders for even tiny startup companies are on salaries of $250K+plus points or equity. It boggles the mind considering there's an absolute glut of decent coders around the globe.

One very successful Tech CEO I know moved all of his coding to Romania and Hungary because the wages for coders in the USA has become so insane.

I remember when beatport was bought, the salary data came out and some coders who were little more than data entry were on $200k a year.

The problem is that with the "earning potential" of tech companies (Uber and Gilt are prime examples), they aren't run in the way a business should run. They spend like they're a successful company from day one (expensive staff, offices, expense accounts etc) even though they've made little to no money and just endlessly rely on finance hoping at some distant point in the future they can pivot it in to a big enough solvent business model to pay off the investors. It's bonkers.

Some of these companies are basically giant Ponzi schemes - they rely on later investment to pay off the earlier investors. I know a guy who has made millions of investing in startups that to this day have never made a penny, but becuase they keep getting investments his shares become worth more and more so he keeps chipping away at them and make a ton.

Back OT, I very much doubt that Soundcloud is going anywhere for the time being.

They basically need investment and they'll get it as there's no real competition or a platform that works as well so as long as UMG don't start meddling and fuck it right up, it will still be around until someone invents a better mousetrap.

Old Post Feb-13-2016 00:09 
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Looney4Clooney
Supreme tranceaddict



Registered: Apr 2010
Location:

spotify still haemorrhages money but at least it does something that alot people rely on. Soundcloud will either become monetized or sold. It is maelstrom of new companies and platforms and i don't think anyone can really see that far ahead.


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Old Post Feb-13-2016 03:10 
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TranceAddict Forums > DJing / Production / Promotion > Production Studio > Soundcloud may be forced to close due to $44m losses!
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