Music streaming service SoundCloud could reportedly be forced to shut down after reports show $44 million in losses for 2014.
The news comes after a new financial report shows that in 2014, the service had a revenue of just $15 million, leading to a loss of $44 million. This result means that between 2012 to 2014, SoundCloud has lost over $85 million dollars.
There are no public reports on the streaming site’s finances for 2015, but after several indicating moves, including a new deal struck in January with Universal Music Group, it appears they’re pulling a variety of maneuvers to stay afloat.
SoundCloud is to be given permission to host music from Universal’s roster in exchange for a percentage of the advertising and publisher access to the service’s statistics and analytics.
SoundCloud has also been planning a paid subscription service, another attempt at making the site profitable, though there is currently no release date.
The platform is currently the biggest open-user music streaming service in the industry, along with the more download-orientated Bandcamp, so there is no doubt that new investments will keep pouring through.
Charlie Nash is a libertarian writer, memeologist, and child prodigy. When he is not writing, he can usually be found chilling at the Korova Milk Bar, mingling with the infamous. You can follow him on Twitter at @MrNashington.