SoundCloud could shut down with consistent revenue loss since 2010

Recent reports of SoundCloud’s financial filings have left the music world in a panic as a number of publications headline that this year’s $44MM losses might force the audio streaming service to shut down. However, according to Next Big Sound’s May 2015 report, this platform has become a mainstay in the mix tape niche market with SoundCloud accounting for 4.9BN plays and a number of major musicians including Drake, Kygo, and The Weeknd topping its charts.

SoundCloud’s growth May 2015 (Credit: Next Big Sound)

Even with SoundCloud’s total loss of $85M over the last five years, the company has been able to strike a deal with Universal last month and introduced a paid subscription service to navigate its murky financial waters.

Will this $700M valuated company follow the same fate to our beloved Grooveshark?