Ago 15 hours and 59 minutosSpotify is located in “conversations advanced” for… – Economíahoy.mx

Jose Luis de Haro (New York) – 8:27 – 29/09/2016

• Spotify had in June last year with a price of around 8,500 million of dollars

The giant of music streaming, Spotify, it is in “conversations advanced” to take your opponent’s SoundCloud, as you are claiming the Financial Times. This last platform, in which Twitter made an investment of $ 70 million, is known for catapulting artists unknown to fame, and by the strong support of the community that make up their users.

SoundCloud has had over the past few months with a market value of around $ 700 million. At least this is the figure that was when Twitter invested in the social platform of audio. According to The Wall Street Journal, Spotify had in June last year with a price of around 8,500 million of dollars.

The company, which has more than 40 million paid users and more than 100 million active users could also be preparing its ipo for the first half of 2017, according to some media. However, Spotify is not yet profitable, and last year lost us $ 194 million.

SoundCloud, based in Berlin, with the devotion of artists and subscribers but has not managed to put its accounts in order. According to the website Music Business Worldwide, the platform lost 44.19 million dollars in 2014 with a revenue of 19.37 million dollars.

last march, the company launched SoundCloud Go, a premium service to compete directly with Spotify and the Apple Music. With a price of 9.99 dollars a month, the offer is similar to its competitors even though some of its users consider that your interface is hard to use. The latest estimates suggest that SoundCloud has 175 million users but it is unknown how many of them use the payment service.

The purchase of SoundCloud on the part of Spotify makes sense as part of the consolidation that it is facing a competitive and somewhat saturated. Companies like Pandora, iHeartMedia and Amazon also plan to launch their payment services of music for streaming and on-demand.

A situation that promises to tighten even more the war between Spotify and Apple Music, which up to now has a total of 17 million subscribers. Tidal, the streaming service created by Jay-Z, has not become a major gap and in fact it is arrived to protest that Apple could be interested in acquiring the company, a news that Cupertino has denied.

Because of the money that these services have to pay to the music labels to be able to offer the music of the artists that they represent, it is difficult for companies like Spotify to get to generate profits. According to some experts, the purchase of SoundCloud could help in any way as, in addition to add subscribers, Spotify would have access to a good number of artists and bands emerging without the need of dealing with intermediaries.

Other news

sponsored Content