Keeping a streaming service afloat these days have become a huge task. In 2014, SoundCloud posted losses worth $43.8 million. However, this year they have managed to do what few have done so far. The Berlin-based music streaming giant boosted its gross revenue 43% in a single year, according to financial data analyzed by Digital Music News.
Their revenue of $28 million can be attributed to their advertising revenue. At any rate, a boost of 43% in one year a huge success. In February 2016, SoundCloud’s financial auditor KPMG issued a cautious statement to investors saying:
“The directors have concluded that the combination of the circumstances… represents a material uncertainty which may cast significant doubt upon the Company’s and Group’s ability to continue as a going concern… Therefore the Company and Group may be unable to realize its assets and discharge its liabilities in the normal course of business.”
Given that the conversion of existing users to subscription tier has been negligible, the revenue is probably a doing of licensing deals and Go.
Source: Digital Music News
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