Spotify in Talks to Acquire SoundCloud (Report)
Despite both having their own subscription music services, Spotify is allegedly in discussions with Soundcloud about acquiring the music streaming giant. What does this mean? Janko Roettgers has the story from Variety.This article originally appeared on Variety
Spotify is in advanced talks to acquire rival music service SoundCloud, according to a report by the Financial Times.
An announcement of the acquisition could be made soon, according to the Times. The acquisition would come just months after SoundCloud launched its own paid streaming service.
A Spotify spokesperson declined to comment on the report when contacted by Variety; a SoundCloud spokesperson declined to comment as well.
Spotify is the market leader in the growing paid streaming business, disclosing earlier this month that it now has more than 40 million paying subscribers. Its biggest competitor is Apple Music with 17 million paying subscribers.
SoundCloud’s own paid service, dubbed SoundCloud Go, likely hasn’t attracted more than a few hundred thousand users, ever since it launched in March. However, SoundCloud does have many millions of non-paying users — the latest publicly released metric from December of 2014 points to 175 million monthly active users.
SoundCloud also has a much larger catalog than any other streaming music service, to the tune of 125 million tracks. That’s because unlike Spotify and Apple Music, SoundCloud does allow its users to directly upload their own tracks without the need to go through any middle men. This has resulted in emerging artists posting their demos on the platform, DJs publishing mix sets, and consumers uploading bootleg recordings.