The official end of SoundCloud is looking closer than ever.
Whether you are fond of it or not, we are undeniably in the “internet rap” era of the game. Although huge music streaming platforms like Spotify and Apple Music are now at the forefront, SoundCloud was there to support your favorite artist before it all. This year has been a rough one for the site, as multiple reports have stated the company is in some pretty serious financial trouble.
All speculation was confirmed when news broke recently on SoundCloud’s decision to lay off about 40 percent of its employees. Moreover, the company announced the closing of its offices in San Fransisco and London, leaving only the Berlin and New York locations running. This week, a new TechCrunch article sparked conversation with its interpretation of a quote from SoundCloud’s founders, Alex Ljung and Eric Wahlforss. The founders have stated that the layoff has helped fund the platform “until Q4”, which starts in less than two months. Because recent financial reports state that SoundCloud is millions of dollars in debt, people had reason to believe the company may have to close its doors soon.
After acknowledging the article, a representative stated that the company is “fully funded into Q4” and that talks with potential investors are underway. However, people are now more hesitant to believe claims from SoundCloud as employees share their increasing distrust of the company after not receiving a clear explanation for the recent layoff. SoundCloud Go, a service in which users pay a monthly fee to have access to SoundCloud without using data, was an effort to reel in more revenue. However, the addition was not significantly successful, which explains the unfortunate other moves the company was forced to make in order to stay afloat.
Millions of music artists and fans will be affected if SoundCloud were to buckle under financial distress. Countless artists rose to stardom due to their start on SoundCloud. Thousands of users would lose access to the gems they have saved in their SoundCloud likes, and many of these tracks are only available in one special place. The site holds a significant role in music culture, and although your favorite can transfer their music elsewhere, nothing will ever be able to replace the true essence of getting lost in a SoundCloud browsing session. Hopefully the site can re-up and come back strong to keep its doors open for the culture.