Which Streaming Music Services are in the Most (and Least) Financial Trouble?

Despite having millions of users worldwide, there isn’t a single streaming music service that’s profitable. They’re all losing money, but some are in worse shape than others. Gizmodo explains.

SoundCloud is fucked. On Thursday, the streaming music service mostly known as a place to hear podcasts and remixes from unknown DJs confirmed that it had taken $70 million in debt funding—basically a loan from various investors—in order to stay in business.It’s never a good sign when venture-backed companies have to raise money from debt financing groups, because it indicates that traditional investors don’t have much hope for the company. This appears to be the case for SoundCloud, as

It’s never a good sign when venture-backed companies have to raise money from debt financing groups, because it indicates that traditional investors don’t have much hope for the company. This appears to be the case for SoundCloud, as TechCrunch reports that the debt funding was raised because the company couldn’t close a $100 million round of funding. Back in February, when SoundCloud released its 2015 financial information, we found out that the company had lost $55 million for the year and was at the risk of running out of cash.

Yet, while having an extra $70 million is certainly helpful, it’s probably not going to be enough to save SoundCloud from the fate of Rdio, Grooveshark, MOG, and other failed music streaming services.

In fact, looking at the landscape, streaming services in general are kind of fucked.

Let’s get the full explanation, shall we?

Alan Cross

is an internationally known broadcaster, interviewer, writer, consultant, blogger and speaker. In his 30+ years in the music business, Alan has interviewed the biggest names in rock, from David Bowie and U2 to Pearl Jam and the Foo Fighters. He’s also known as a musicologist and documentarian through programs like The Ongoing History of New Music.

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