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Soundcloud may be forced to close due to $44m losses!
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| DJ RANN |
It seems soundcloud can't make the business work. The wages alone are more than their entire gross income :wtf:
| 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/ |
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| tehlord |
Those average salaries are lol
IT was a good ride boys, now eat sh1t and die |
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| kosmotika |
| Wonder what alternatives there are...I actually did like soundcloud and found it to be really useful for uploading and sharing my music. |
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| cryophonik |
| Donald Trump should buy it, change the name to Trumpcloud, and change all the orange to gold. |
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| AlphaStarred |
| 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. |
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| Storyteller |
| 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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| cryophonik |
| 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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| MSZ |
| Where are they losing the money? Bandwith? |
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| MSZ |
| I still dont really understand it, whatever this im out. |
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| DJ RANN |
| 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 it right up, it will still be around until someone invents a better mousetrap. |
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| Looney4Clooney |
| 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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