The future of Soundcloud was left in even further doubt this week as The Financial Times reports “significant doubt on the company’s ability to continue as a growing concern.”
The article branded Soundcloud as a “broken business model in desperate need of repair” after reporting another €39.14m (£30.66m) in losses for their last year of business.
Soundcloud struck a huge deal with the Universal Music Group in January which seemed to have changed the inevitable fate of the streaming service. This new report however, is an insight into just how bad things have gotten for them.
During the same time period in which these losses were accounted for the average wage of a Soundcloud employee increased 42.5% to €79,980 (£62,649)
Despite raising £53m in investment from their corporate contributors such as UMG in 2015 it would appear that they are still in very muddy waters.
It looks like Soundcloud’s employees won’t be accepting a pay cut anytime soon and these reports are less than promising.
We can only assume that a standard subscription fee could be introduced soon, as the company could be forced to find new revenue streams to stay afloat.
