Soundcloud loss of €51 million in 2015 does not bode well
The major Soundcloud loss of €51million in 2015 could be affecting the company’s financial fluidity in 2017. Reports keep coming through on the happenings over at Soundcloud since it seems the situation with buyers and backers changes weekly. Last week there were even rumours about Google wanting to buy out the platform.
It has been suggested that Spotify, a competitor, was interested in buying the Soundcloud streaming site, but nothing came to fruition. Then Soundcloud launched its paid for subscription service which would be ad free. This new subscription made all of its loyal users irate at the thought of now, suddenly having to pay.
The future of the streaming site is unclear from the outside, while for the owners it appears to be touch and go as well. According to a report from Companies House, the Soundcloud loss endured is a net loss of 30.9% because of the €51million loss in 2015.
In that time the company grew its revenue by 21.6% but even this could not compensate for that major financial blow.
The state that this Soundcloud loss puts the company in means that the streaming site will now have to rely on the success of its subscription service, if they are going to make it.
The subscription service costs ten dollars a month and was launched in Germany, the US, and UK last year.
“The assumption of a successful launch of the new subscription service is the key element of [our] financial projections for the next three years. Whilst the directors believe that the Group will have sufficient funds to continue to meet its liabilities through 31 December 2017, the risks and uncertainties may cause the company to run out of cash earlier than that date, and would require the Group to raise additional funds which are not currently planned. These matters give rise to a material uncertainty about the Group’s ability to continue as a going concern.” said co-founder Alexander Ljung