Forums / Media / Music

I've heard that Soundcloud recently laid off around 40% of its employees to cut costs and improve their financial situation. But now I've been hearing things along lines of "Soundcloud might not make it by the end of 2017." Is this true? I don't want to believe it, but if it really is going to happen, I'll find a way to accept it. But can someone explain the whole situation?

Soundcloud is where I go whenever I'm in the mood to find any kind of unique music. I also use the app whenever I'm on the go. I honestly don't know what else to use in the event that Soundcloud goes under.

Their simply not turning enough of a profit to keep themselves afloat, as I understand it, nor are they a super huge company like Google to keep it going despite a lack of profit.

Like Twitter, they've struggled to make money with advertising, which coupled with the money they burn on server space for all the uncompressed audio, means they've been hemorrhaging money over the last few years.

They've gotten a round of venture capital funds so they'll stay alive for the time being, but it's still unclear what exactly they're going to do to stop the bleeding. It might not be good for the users.