The company is losing money
Soundcloud has been losing money with 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.
The company is running out of cash
Soundcloud is ruining out of cash fast. At some point in 2017 sources reported that the company had only 50 days left. Even though Sound cloud has managed to get another round of financing its future is still highly questionable.
Problems with the business model
The problem with Soundcloud is mainly with its business model where the company is not finding a good way to make profits for the services it provides.
They can’t get enough subscribers
The company has been trying to get enough subscribers to generate profits but the efforts has been failing. This lead to the reduction of the price of their premium service more than once.
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 had made getting more financing more difficult. (See How to identify a stock market bottom?)
The company sometimes has to close accounts because of the lack of the proper copyrights. This degrades the service and makes it hard for the company to sell its service. Some point out that the deal with Sony could help solve this problem.
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.
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. (See Why did Radioshack fail?)
Why Soundcloud is failing?
How SoundCloud’s broken business model drove artists away? Why Soundcloud is failing?