Islands in the stream SoundCloud might “run out of cash this year” after financial losses in 2015
It really needs its subscription service to bring in the big bucks.
It seems that 2015 wasn’t great for SoundCloud, as they’ve just revealed they made some pretty hefty financial losses that year.
According to Music Business Worldwide, the streaming service posted a net loss of $52m in 2015, which means it could “run out of cash” before the end of this year. The figures were revealed by co-founder Alexander Ljung in a report, which says that they’ll have to rely on the platform’s new SoundCloud Go subscription service to help bring in additional funds. If that doesn’t take off, the company could be very strapped for cash.
Ljung said: “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.”
He continued to say that “whilst the directors believe that the Group will have sufficient funds to continue to meet its liabilities through 31 December 2017, the risks and uncertainties may cause the company to run out of cash earlier than that date, and would require the Group to raise additional funds which are not currently planned.”
Funding measures that aren’t currently planned? Makes you wonder if this will affect Google’s attempts to purchase the platform at a reduced price…