Spotify Reportedly In Talks To Buy SoundCloud
Thu, 29 Sep 2016 09:14:17
Soundcloud is arguably one of the most influential internet services on the internet. The streaming site offers countless unsigned musicians a platform for their music, which is blended with notable artists who also have accounts. The brand is one that nurtures creativity and community between artists and audiences alike. However, the path to Soundcloud's monetization has proven difficult for the site.
In a Swedish TV interview last month, Spotify founder/CEO Daniel Ek expressed his opinions on the dilemma faced by SoundCloud. "The only thing that's missing on Soundcloud is the ability to make money from your songs. That has never been Soundcloud's strength. It is however Spotify's." Said Ek. Now, according to the Financial Times, Spotify "is in advanced talks to acquire SoundCloud."
In July of this year, the asking price for Soundcloud was estimated at $1 billion. Spotify reportedly lost $200 million in 2015, and now may have a creative solution to the acquisition of a company that is also losing money.
It's a reality of media acquisition that talks can take forever, stall or break down entirely. However, entire communities of artists - both amateur and professional - along with industry insiders, will surely have a vested interested in Soundcloud and Spotify unifying to strengthen the streaming market, and offer the opportunity to earn from their creative endeavors.
—The ARTISTdirect Staff