Quartz writes:
Music streaming is a tough business to be in. Even the biggest names lose money. It’s an even tougher business to get out of, as exits have been scarce. That might soon change if SoundCloud is indeed in “advanced talks” to sell to rival Spotify, as the Financial Times reported on Sept. 28 (paywall).
Both SoundCloud and Spotify are unprofitable—but both have raised substantial sums of capital and boast large catalogs, brokered with the major record labels. But while Spotify is said to be preparing for a public offering next year, SoundCloud just pivoted to a subscription-based business model, the very model Spotify is best known for.
Read the full article here.
