Music Business News has reported that Soundcloud has €51 million euros ($53.84 million USD) in 2015, and the report suggests that they may run out of money before the end of the year.
The report further highlights that much of Soundcloud's future rested on the success of Soundcloud Go, with co-founder Alexander Ljung explaining that "The assumption of a successful launch of the new subscription service is the key element of [our] financial projections for the next three years… [This] bears financial risks regarding the operating results and cash flows of the group."
"SoundCloud filed its 2015 accounts with Companies House in December, and they are now publicly available on their site as of today. The accounts show that, in 2015, we were heavily focused on putting the necessary measures in place to build out our monetization model, including our consumer subscription service, SoundCloud Go, and roll-out of advertising on the platform. This meant investing in technology, people and marketing, as well as securing complex licensing agreements with key music industry partners. As such, the company remained unprofitable.
In 2016, we saw solid growth not only for the industry but for SoundCloud too. And we see this trend continuing throughout 2017. To date, we have successfully launched SoundCloud Go subscription service and our ads business in eight markets, including the US, UK, Ireland, France, Australia, New Zealand, Canada and Germany and we are on a very positive path to achieving our aim of enabling all creators to be paid for their work, while also building a financially sustainable platform where our connected community of creators, listeners and curators can continue to thrive."