If reports are to be believed, Spotify is in advanced talks of acquiring rival platform SoundCloud and the announcement could be made soon.
According to a report by the Financial Times, music giant Spotify is reportedly set to acquire one of its biggest rivals, SoundCloud pretty soon. With over 40 million paying subscribers, Spotify is the current market leader in the growing paid streaming business. Apple Music comes in at #2 with 17 million paying subscribers. SoundCloud too did launch its paid streaming service SoundCloud Go, though the platform hasn’t quite taken off as yet. So why go after SoundCloud’s $700 million business?
SoundCloud is a disaster as a company and that’s already been proven. However, while Spotify continues its dominance in subscribers and catalog size, SoundCloud serves as the ideal platform for emerging artists to upload their own music, remixes, and mixes, tapping into a much broader consumer base. In fact, SoundCloud’s catalog largely outweighs that of its competitors, with 125 million tracks at last count. Acquiring SoundCloud could help Spotify bolster its own catalog and offer emerging artists an easier way onto the service. It could also help Spotify make the case for ad-supported streaming. SoundCloud is the YouTube of music and if Spotify really wants to stick it to Apple, acquiring SoundCloud could really give them the leverage they need.
So, what do you think? Is it a smart move for Spotify to capitalise on its rival’s weak form and strong business model or will this just eventually blow up in their face? Have your say in the comments below…
Source: Variety
Khushrav’s passion for dance music started early on as he began creating weekly podcast episodes of the latest electronic music across genres and has mixed over 200 episodes over a span of 5years. As a dance music enthusiast, Khushrav still keeps up to date with every week’s releases, contributing to THE’s Spotify playlists.
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