SoundCloud Might Survive for Just Couple More Months
The SoundCloud music streaming service, which fails to establish prosperous business model, currently has enough money to survive the fourth quarter after cutting 40 percent of its employees, a company spokesman said.
The Berlin-based start-up is different from its rivals Apple, Spotify and Amazon as it relies more on non-professional musicians for which it provides a platform. But there are fewer commercial performers on the service.
Like other companies on the market, Soundcloud has not made a profit. The big record companies, which most services rely on, are under pressure from digital music and make less profitable deals.
And SoundCloud, which three years ago said its users reached 175 million, has neither a large subscriber base like Spotify nor a financial power like Apple and Amazon that subsidize their own music services.
Last week, SoundCloud announced that it fired 173 employees and is in the process of closing its offices in London and San Francisco in order to focus more on those in Berlin and New York. Reported by Investor.
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