So it has been revealed and raved about today that Spotify are in the process of potentially buying out SoundCloud for a wildly estimated amount of money.
SoundCloud’s founding members and investors were rumoured to be exploring more business opportunities, including a sale evaluation that could value it at $1 billion, Bloomberg reported in July.
It has come as somewhat of a surprise that the Swedish service provider would make such an audacious bid despite murmurs of an ongoing rivalry between the two platforms. It has been suggested that all companies are frantically throwing new ideas into the mix after huge loses last year in the music streaming business.
With growing competition from Apple, Google and Amazon, it could be a strategy to sell off SoundCloud to the highest bidder in case of a huge collapse in the following years.
From an artists and musicians point of view, this sale is both exciting and incredibly worrying. We all know at this point that the purchasing of music is at an all-time low with music being available at the click of the button usually free of cost. But having said that, the streaming service has allowed for unknown musicians to flourish online with YouTube and Google allowing for careers to be made via their streaming services.
SoundCloud for me was always the weakest of the streaming services with an outdated platform and a lack of opportunity to build an audience, but with a big budget acquisition or perhaps a re-branding, I will be waiting patiently to see what they can do for this largely independent streaming site.