Is Soundcloud's Debt Too Big to Sustain It?
EntertainmentThe digital streaming service SoundCloud is reportedly spending more money than it has, making its future tenuous. While this is a company with a history of terrorizing its users, where are we supposed to listen to random Erykah Badu remixes?
Though SoundCloud’s revenue has recently grown by 53.9 percent, that hasn’t outweighed its losses of about $41.8 million, thanks to staff salaries and marketing costs, according to Billboard. In January, SoundCloud reached a licensing deal with Universal Music Group, but it seems they were looking too far ahead at their forthcoming subscription-based service and not enough on staying afloat.