Well, the numbers are out and you might be in for a shocker. SoundCloud lost approximately $15 million in 2013! In recent filings, the music streaming mammoth disclosed their annual report, detailing revenue of over $14 million last year as compared to $10 million from the previous year- a 4-% hike. However, this wasn’t enough to cover the company’s operating costs that nearly doubled from over $15 million to $29 million!
SoundCloud explained the exorbitant expenses, mentioning
“We are in a phase of growing SoundCloud into the market-leading platform for listening to, creating and sharing sound. This has necessitated investment in technology, headcount and marketing. Our overhead base has increased faster than our revenues.”
However, if you’re a frequent SoundCloud junkie like us, you’d probably know that the app has had a pretty bad year in terms of downtime and changes that barely spark much innovation. To add to that, the introduction of audio ads has changed the status quo from a no nonsense music streaming site into a money making machine. The cherry on top though, would have to be artists themselves shunned out of their SoundCloud homes as well as upcoming artists being locked out due to “copyright infringements”.
We all love SoundCloud, but what do you think about the road they’re headed on? Leave your comments.