Big trouble in the cloud. The popular Berlin-headquartered music streaming startup SoundCloud is hemorrhaging money according to reports. SoundCloud can run out of money in 2017 if its recently launched subscription service doesn’t generate enough revenue.
In 2015 the company’s net losses increased by 30.9% to $52m. Sheesh!
Heads Are Rolling
With numbers like this there are bound to be some changes in upper management and the first casualties are the COO Marc Strigel and the vice president of finance Markus Harder. The company confirmed the departure of the two executives.
Don’t fret, SoundCloud is too popular to just disappear if things go south. If worse comes to worse a company will scoop them up for pennies on the dollar and keep the party going, while they figure out how to effectively monetize the ears.