more bad news for Sound cloud

[Killing time]

ouch

could this be the end of SC? what does this mean for other platforms like mix cloud and Ello?

[ImNotDedYet]

It's actually typical in growth scenarios for startups to lose money - heck, it's typical in growth scenarios for public companies. The more concerning thing is the lack of a deal with record labels at this point IMO and getting new funding. Until that happens, soundcloud will just be a bit player. If they can get the labels on board, they could be HUGE. Mixcloud already has deals w/ labels as far as I understand. Not sure about Ello.

[AllDay]

They lost money yes. But if you read the article a lot of the money came from investors and people that want to push the company forward. It didnt come from sc solely.

[Killing time]

yeah, thats all understandable. but the big issue at hand is the monotization strategy that Soundcloud has tried to employ with positive results. most of the big content creators that used sound cloud have left because of sound cloud pulling their content. even with Sound cloud adhering to the record companies request to pulled unlicensed content has not satisfied the record labels desires;
"Deals with labels have been complex because they are about more than about advertising alongside content hosted and consumed on SoundCloud. There is also the issue of paying out royalties for licensed music that gets listened to on SoundCloud." The issue comes down to money, which is obvious, and Sound Cloud is still receiving a far less liquid commodity for the content that doesn't belong to Sound cloud; users.

They have to figure out a business model that will allow their operational costs to scale positively to their the revenue generator, or they will loose all of the funding in a few years time.