Inside sources report that SoundCloud is running ‘dangerously low on cash’
There’s no doubt that SoundCloud has played an influential role in the development of the electronic music industry. But, what was once a bastion for independent artists looking for a place to share their work, the Berlin-based company has become a bit of an industry pariah. Poor negotiations with two of the three major labels has halted the platform’s monetization plans and a recent spat of takedown notices has lead its users to lose faith in the service.
According to Digital Music News, SoundCloud is in far worse shape than originally speculated. Three individuals close to the organization told DMN that the company was ‘dangerously low on cash’ and unlikely to secure an additional round of funding. Fault lies with the major labels, specifically Universal and Sony, who have both put pressure on the service to pay out royalties for their content and derivative works. Insiders report that things are looking grim for SoundCloud and unless it can sort out its pending lawsuits and monetization, the company will have to secure additional funding in the next 4-5 months. This news comes with the platform’s announcement that it would be rolling out $10 monthly subscription services in the future, a possible bandaid on what appears to be an unsustainable business model.
Via: Digital Music News
Categories: News