Thursday, September 29, 2016

Spotify wants to be the giant of the ‘streaming’ with a possible purchase of SoundCloud – CNET in Spanish

Spotify would be in talks to buy the service music by streaming SoundCloud, according to a report from The Financial Times.

The purchase of SoundCloud could use Spotify to strengthen its service portfolio in against of Apple Music, the music service for streaming Apple, which already has 17 million subscribers in a little over a year of availability.

The Financial Times says that the announcement of the acquisition would be done very soon, suggesting that the talks have been developed from a while ago. Not to mentioned the figure of purchase, but Bloomberg said in July that the German would be looking for a buyer for about US$ 1,000 million.

a year and a half Ago, SoundCloud launched its music service for streaming SoundCloud Go, but has not been able to capture the attention of the users. The service of pay for, while not being able to win more than a few thousands of users, the free version and radio had 175 million active monthly users, according to figures published by SoundCloud in 2014.

Spotify would be interested in buying SoundCloud because of its user base and, above all, its music catalog. The service has over 125 million songs and many are mixes exclusive to musicians recognized that the upload to SoundCloud as demos; but the service, based in Berlin, also has music from artists low profile.

In comparison, Apple Music and Spotify have a catalogue of over 30 million songs each.

The purchase of SoundCloud would also be peculiar, but Spotify is still operating with red numbers, something that the european company has not been reversed. Since its foundation, the company dedicates the majority of its revenue to pay royalties to artists.

on the other hand, Spotify continues to grow its user base, which by mid-September reached the 40 million users of paid and slightly more than 70 million using the free version.

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