Music stream host SoundCloud has become arguably–if not undisputedly–the most reliable company of its time since its inception in 2007. However, new financial reports are exemplifying staggering losses that has left the site’s future in jeopardy.
The German-based SoundCloud writes that in its quest to become “the market leading platform for listening to, creating and sharing sound,” its overhead resulted in the loss of more than $70 million from 2013-2014. In recent months, the company has implemented advertising in between songs and even reached a huge licensing deal with Universal Music in January of this year but the cost of expansion has been dangerously expensive.
Despite the understandable reason for concern, the company appears to be more focused on a potentially glorious future. While speaking to FACT magazine, a SoundCloud rep said that the figures “reflect those of a company in a strong growth stage,” which still has “over 18 million creators are using the platform, sharing well over 110 million tracks, and reaching 175 million monthly active listeners.”
SoundCloud recently also managed to raise $77 million in funding for 2016 that will go toward achieving “positive cash flow.”
