Crisis of the end of music sharing service "SoundCloud", this time no longer grace

Music sharing service celebrating 10 years since its foundingSoundCloudIt is at a crossroads as to whether or not the business can survive with independence. Although revenues have grown more than twice in the past year, it seems that profits are not coming out much.

SoundCloud »A note from Alex Ljung

"SoundCloud" is a service that Alexander Lyng produced in 2007, anyone can easily share music. Mr. Rung, who youngly created innovative services, is based on MIT Technology Review35 innovators under the age of 35 with world influenceIt is chosen.

35 innovators under the age of 35 with global influence - GIGAZINE

Excellent service which is also expressed as "Music version YouTube", not only for general users, but also for Universal Music Group label "Republic Record"And professional artists also have songs open to the public.

In 2014 when we started advertising display, Twitter's takeover story was raised.

Does Twitter acquire music cloud service "SoundCloud"? - GIGAZINE

Also, in 2016 when we launched the flat-rate service "SoundCloud Go", the acquisition by Spotify, which is a music streaming service, and the acquisition by Google since the beginning of 2017, did not.

Google mulling SoundCloud buyout, say whispers - as Sony and Universal's stakes are revealed - Music Business Worldwide

There is also a circumstance that SoundCloud struggles for a long time in terms of monetization while holding 175 million users in this story behind the acquisition of this much story. In the three years from 2012 to 2014, the income was 41 million dollars (about 4,650 million yen), while the loss was 86 million dollars (about 9,760 million yen). The fund procurement has been steadily carried out and the number of people has also increased, but as service continues to grow, revenues have not improved so much, in this time 173 people, which is 40% of the 420 employees this time, It was decided to dismiss the company. At the same time, several offices were also consolidated in two places, New York and Berlin.

According to TechCrunch, large-scale staffing is only "earn time", and the time left for business continuity is 50 days.

SoundCloud is in a serious crisis - the time left for user-generated music streaming business is 50 days | TechCrunch Japan

in Web Service, Posted by logc_nt