Spotify in 'Advanced Talks' to Purchase SoundCloud

[MacRumors]

Streaming music service and Apple Music rival Spotify is in "advanced talks" to acquire audio distribution platform SoundCloud, reports Financial Times. Little information is available on the terms of the potential deal at this time.

SoundCloud, which allows users to upload, promote, and share audio recordings ranging from music to podcasts, has upwards of 175 million total listeners a month, which could bring a huge influx of customers to Spotify and give it an edge over Apple.

Spotify has 40 million paying subscribers compared to Apple Music's 17 million paying subscribers, but Apple Music's numbers have been growing steadily since its 2015 launch. Apple Music is also backed by the strength of Apple's subscriber base, which dwarfs that of most other music services and gives the company a huge pool of potential future subscribers.

As competition heats up between Spotify and Apple Music, the two have become bitter rivals and have been involved in some public battles over issues like exclusivity, the App Store, and free listening tiers in recent months.

SoundCloud recently introduced a new subscription service designed to compete with Spotify, Apple Music, Pandora, and other music streaming options. SoundCloud Go, priced at $9.99, gives users on-demand ad-free access to 125 million tracks, including premium licensed content.

With a SoundCloud acquisition, Spotify could potentially add all of that user-created content to its own music catalog, giving customers more original content to listen to along with its existing licensed content.

Article Link: Spotify in 'Advanced Talks' to Purchase SoundCloud

 

[farewelwilliams]

And then Apple purchases Bandcamp.

 

[Michaelgtrusa]

Anyone worried?

 

[Mac Fly (film)]

Now's a perfect opertunity to hate on Apple, you guys.

 

[Nozuka]

How can they afford this? Aren't they still operating at a loss?

 

[HopefulHumanist]

How can they afford this? Aren't they still operating at a loss?

Came to ask the same thing. Their investors must love the smell of burning cash.

 

[69Mustang]

How can they afford this? Aren't they still operating at a loss?

The Donald Trump school of financing. Agree to price, default, and negotiate.

Seriously though, they need to make some profit before spending money.

 

[iJon]

Huge fan of Soundcloud, one of the best places to get DJ sets. Smart purchase by Spotify if it goes through.

 

[pbush25]

This would be awful. SoundCloud is a place for aspiring artists and the like to get their content out to those that aren't behind a paywall and taking this away from them by purchasing their outlet would be disastrous. Plus I use SoundCloud and Apple Music in conjunction and if all that other music disappeared I would be sad.

 

[Gudi]

With a SoundCloud acquisition, Spotify could potentially add all of that user-created content to its own music catalog, giving customers more original content to listen to along with its existing licensed content.

A merger that makes sense from a customers perspective? Go away, what's next. Internet companies paying their taxes? Alter Schwede.

 

[heifetz7]

Wonder why Apple isn't buying Soundcloud instead. If they're willing to pay 3bn for Beats, SoundCloud would be a bargain and a drop in the bucket for them. And more importantly, Soundcloud has a much younger audience than Beats.

 

[iJon]

Wonder why Apple isn't buying Soundcloud instead. If they're willing to pay 3bn for Beats, SoundCloud would be a bargain and a drop in the bucket for them. And more importantly, Soundcloud has a much younger audience than Beats.

It would be horrible if Apple purchased Soundcloud, because their game plan would be to absorb it. At least with Spotify we have a chance they'll leave it alone and find a way to monetize it.

 

[heifetz7]

It would be horrible if Apple purchased Soundcloud, because their game plan would be to absorb it. At least with Spotify we have a chance they'll leave it alone and find a way to monetize it.

They could've integrated it into apple music, it's a good alternative / indie addition to the mainstream stuff that they have, since it allows anyone to upload their own music, it's something that is missing right now. Maybe apple doesn't want to do it, since it kinda conflicts with the commercial side of the business.

 

[Gudi]

If they're willing to pay 3bn for Beats, SoundCloud would be a bargain and a drop in the bucket for them. And more importantly, Soundcloud has a much younger audience than Beats.

Audience? Oh I remember, Beats was supposed to be about a curated music service, not just expensive headphones. Yeah, that didn't work for me. I don't like most music from outside Berlin.

 

[nburwell]

Huge fan of Soundcloud, one of the best places to get DJ sets. Smart purchase by Spotify if it goes through.

Same here. Absolutely love Soundcloud. While I prefer Apple Music over Spotify after the iOS 10 redesign, I'd certainly be swayed to move back to Spotify depending on how they incorporate Soundcloud into their existing catalog.

 

[Michael Scrip]

Came to ask the same thing. Their investors must love the smell of burning cash.

Investors gave Spotify another $500 million not too long ago.

That's on top of the $2+ billion they have already given them over the years.

Burn baby burn!

Investors must be counting on a buyout. That's what usually happens with most high-valued tech companies.

 

[Porco]

Ugh, I hope not. Better than if it was Facebook though, I suppose.

 

[Merkie]

How can they afford this? Aren't they still operating at a loss?

So? Amazon hardly has made any profit for 20 years.

 

[Deelron]

So? Amazon hardly has made any profit for 20 years.

The difference is Amazon could stop burning money if it wanted to do so on their moonshot type projects and nearly instantly be profitable. Not so much for Spotify.

 

[pwgc]

Wonder why Apple isn't buying Soundcloud instead. If they're willing to pay 3bn for Beats, SoundCloud would be a bargain and a drop in the bucket for them. And more importantly, Soundcloud has a much younger audience than Beats.

More to the point, they could have bought Spotify for $8bn when they bought Beats for $3bn. But I guess some stupid Swedish company isn't as cool as the dudes at Beats. Eddie got to hang our with his heroes.

 

[esp718]

SoundCloud has always been a sleeper for its content, one of the last places for indie/underground content - might switch subscription back to Spotify if this happens

 

[69Mustang]

Wonder why Apple isn't buying Soundcloud instead. If they're willing to pay 3bn for Beats, SoundCloud would be a bargain and a drop in the bucket for them. And more importantly, Soundcloud has a much younger audience than Beats.

Profit. Plain and simple. Beats is profitable.

 

[0029937]

This would be awful. SoundCloud is a place for aspiring artists and the like to get their content out to those that aren't behind a paywall and taking this away from them by purchasing their outlet would be disastrous. Plus I use SoundCloud and Apple Music in conjunction and if all that other music disappeared I would be sad.

How would this be awful if we don't know the full scope of the deal and future plans from Spotify with what they would do this this new "project". Stop being so pessimistic and selfish. Not everyone has the same listening habits as you. Wait until this is official and it starts sucking before you start crying.

 

[Jakexb]

I was really hoping Apple would buy out Soundcloud. It's basically the "Connect" functionality they were hoping for with a huge community already using it.

 

[ProVideo]

Wonder why Apple isn't buying Soundcloud instead. If they're willing to pay 3bn for Beats, SoundCloud would be a bargain and a drop in the bucket for them. And more importantly, Soundcloud has a much younger audience than Beats.

They paid 3bn for Beats Music's label contracts, Jimmy Iovine's contacts within the industry, and Dr. Dre's name.