Soundcloud Is Running ‘Dangerously Low on Cash’

Universal Records Finalizes Soundcloud Streaming Deal

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There’s no doubt that Soundcloud has been a major influential role in the popularity and development of the electronic music industry.

In June 2015, we reported news that Soundcloud Could Be Sued For “Massive Copyright Infringement”.

What was once a safe haven for independent artists looking for a place to share their music for free to the world, has now made the Berlin-based music streaming company an elephant in the room.

BRO Check My Soundcloud

BRUH Check My Soundcloud! Might just be a thing of the past here very soon if Soundcloud goes 6 feet under. What link will EDM DJs and producer be spamming next on social media? Mix Cloud? Audio Mack? Hulk Share? EDM Ranks?

In August of 2014, Soundcloud intorduced ads.

Poor negotiations with two of the three major labels stopped the worlds biggest music sharing platform’s monetization plans and recent takedown notices have made users weary and loose trust in the service.

Get ready for even worse news. Soundcloud is in much worse shape than anyone originally thought, According to Digital Music News.

Three individuals close to the organization told Digital Music News that Soundcloud was ‘dangerously low on cash’ and will unlikely secure additional funding. The reason is because of failed negotiation with the major record labels, specifically Universal Records and Sony Music Entertainment, who have been pressuring the cloud music company to pay out royalties for their music library content.

The Soundcloud being broke news comes with the platform’s announcement of implementing a $10 monthly subscription services in the future for all users to even listen to music.

Soundclouds current music distribution earns revenue by two ways:

  1. Uploading artists who pay for pro.
  2. In the US, Paid advertising from major corporations like Pepsi, Jaguar, and Axe.

User end subscriptions will become Soundcloud’s third source of capital, But Chief Technology Officer Eric Wahlforss has not detailed the difference between the free Soundcloud and premium Soundcloud.

Unless Soundcloud can sort out its pending lawsuits and monetization, the company will have to secure additional funding in the next 4-5 months.

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