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Spotify 'in talks to take over Soundcloud' | Spotify 'in talks to take over Soundcloud' |
(about 5 hours later) | |
Music streaming company Spotify is reportedly in talks to take over $700m (£535m) rival Soundcloud. | Music streaming company Spotify is reportedly in talks to take over $700m (£535m) rival Soundcloud. |
The two sides are in advanced negotiations, according to the Financial Times. | The two sides are in advanced negotiations, according to the Financial Times. |
The talks come at a time when competition in the streaming music sector is intensifying. | The talks come at a time when competition in the streaming music sector is intensifying. |
Sweden's Spotify remains the market leader but faces increasing competition from Apple Music and Amazon's recently launched music service. | Sweden's Spotify remains the market leader but faces increasing competition from Apple Music and Amazon's recently launched music service. |
German-based SoundCloud built its business by allowing artists to upload their music and share it with fans on social media and blogs. | German-based SoundCloud built its business by allowing artists to upload their music and share it with fans on social media and blogs. |
It has established the company as an influential player in the music industry, especially in the dance music genre. | It has established the company as an influential player in the music industry, especially in the dance music genre. |
In March, the company launched a pay-for streaming service similar to the offering from Spotify or Apple Music. | In March, the company launched a pay-for streaming service similar to the offering from Spotify or Apple Music. |
No profit so far | |
The firm has failed so far to make a profit, but has Twitter as its most high profile investor. | |
Mark Mulligan, an analyst at consultancy Midia, has been blogging on the takeover claims. | |
"Soundcloud has been shopping itself around for some time, while Spotify needs to continue outpacing Apple as it heads towards an initial public offering." | |
But a deal would be "far from a guaranteed winner for Spotify" as Soundcloud's growth may have "peaked" in 2014, he says. | |
Spotify, meanwhile, has seen its revenues reach €1.95bn ($2.2bn; £1.5bn) over the past year, but still has failed to make a profit. | |
The platform offers music over the internet for nothing, with advertisements or ad-free for a fixed monthly rate. | |
Apple launched its own music streaming service in 2015, while there are many smaller companies such as Rhapsody, Tidal or Deezer offering a similar service. | |
Spotify currently has 40 million paying subscribers, while next big player Apple Music has 17 million. |
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