Whether it be the blog world or your personal Facebook feed, the news of Soundcloud’s collapse in the next 50 days has spread far and wide. News of this collapse came from a recent article on Techcrunch and was based on a statement from two recently laid off Soundcloud employees. Now it isn’t entirely absurd to think that Soundcloud is on the verge of collapse, especially after it was widely reported they laid off 40% of their staff and closed down their New York and London offices. However, in light of everyone freaking out from this report, Soundcloud has released a statement of their own.
“There are a number of inaccuracies within the TechCrunch article. They seem to stem from a misinterpretation of information by one or two laid off employees during a recent all hands meeting. Due to the extensive number of inaccuracies, we will only comment regarding funding and layoffs. To clarify, SoundCloud is fully funded into the fourth quarter. We continue to be confident the changes made last week put us on our path to profitability and ensure SoundCloud’s long-term viability. In terms of layoffs, it is our policy not to discuss individual employee cases, but we can share we continue to work with all employees who were let go to support them during this transition, with employment and financial assistance.”
Unfortunately, at this time, this incident has become a back and forth situation at which you either have to take the word of Soundcloud or Techcrunch, who have stood by their report. The takeaway from this though is that without a doubt, the streaming service that has been a home for pretty much every single one of us with an interest in music is in trouble.
Now, how Soundcloud proceeds from here is where the real speculation is. They can either try to revamp their model to be more akin to that of Spotify or Apple Music, sell users metadata (If you don’t know what this is, please read here, it is NOT your personal data and history), or try and find an investor or buyer for the company. But seeing a platform thats essential to the ecosystem of developing talent and boasts hundreds of millions of users closing their doors immediately in 50 days is EXTREMELY unlikely.
Although the apocalyptic freak out about Soundcloud is definitely unwarranted, it definitely would not be a bad idea to back up your music that is on there. Hopefully, everyone’s favorite music platform will be here to stay but at this point, we can only wait and see what will happen.
STAY IN THE KNOW! FOLLOW US ON SPOTIFY