Thanks for the Melodies, Soundcloud
By Abbie Doyle, Albums Editor
Surely not to anyone’s intense surprise, Soundcloud has reported 2013 losses of over $25 million. The loss is nearly double that dealt in 2012, despite increases in revenue. According to an official statement, the company invested heavily in “technology, headcount and marketing” in an attempted leap to boost Soundcloud’s site traffic.
Photos on Soundcloud’s site reveal swanky new offices and all the recent hires that lounge in them. Well, “sleep” might be the better word, but on the clock? The company’s investments seem a bit... questionable.
Nonetheless, economic factors certainly play a part. Soundcloud’s market is far from predictable and staying one step ahead is a necessary risk. Competition from Apple, Amazon and Spotify is another challenging aspect Soundcloud must face, but it’s safe to assume Soundcloud could have cared more about investing wisely than building new breakrooms. That and the fact zero major labels want to strike deals with Soundcloud predict the company's sad future deep in the red.
