Why SoundCloud is failing

    Why SoundCloud is failing

  • 1 The company is losing money

    SoundCloud has been losing money at a fast rate. The company lost €51.22 million in 2015. That's 30 percent more than the amount they lost in 2014, according to TechCrunch.

  • 2 The company is running out of cash

    SoundCloud is running out of cash fast. At some point in 2017, sources reported that the company had only 50 days left. Even though SoundCloud has managed to get another round of financing, its future is still highly questionable. 

  • 3 Problems with the business model

    The problem with SoundCloud is mainly its business model where the company can't fine a good way to make profits from the services it provides. See how SoundCloud started.

  • 4 They can't get enough subscribers

    The company has been trying to get enough subscribers to generate profits but the efforts have been failing. This led to the reduction of the price of their premium service more than once.

  • 5 Investors are skeptic about its future

    In 2017, investors became skeptic about the company's future as a result of the bad financial reports and the expectations of failure. This has made getting more financing more difficult.

  • 6 Account suspensions

    The company sometimes has to close accounts because of the lack of proper copyrights. This degrades the service and makes it hard for the company to sell its service. Some people have pointed out that the deal with Sony could help solve this problem.

  • 7 Strong competition

    The uncertain future of the company and the aggressive song take down because of copyright issues could motivate users and content creators to move to competitors. This can speed up the business' failure.

  • 8 No proper reward for content creators

    Content creators are not getting a proper reward for their content mainly because of the company's financial problems. This could drive away those content creators and speed up the business' failure.