Spotify has proven to be one of the most successful music sharing company today. However, it is not really doing that good revenue-wise, together with SoundCloud. Spotify is still losing money despite the increase in its revenue.
With regards to SoundCloud, the company is experiencing an even bigger problem when it comes to money. Obviously, a merging between the two companies would be a smart thing to do as both shares a common interest.
The premium offer that SoundCloud offers isn't a really a success. On the other hand, Spotify's offer did, which is why SoundCloud would share the 40 million users that are paying Spotify, as well as its $1 billion funding round.
The Merging of Spotify and SoundCloud
Spotify is also having big ad operations that it can use to help monetize SoundCloud back to its profitability. It is very evident that the users of SoundCloud are using its services for free, very different with that of how Spotify users approach it.
This is a very smart move to make to take on a new demographic, knowing that it has a library that contains more than 30 million fully licensed songs. Because of SoundCloud's community, it is also most likely that it will undergo the merging one step at a time and not all at once. This is to not shock the users.
However, if this ever does come true, then this would usher in a new age for music sharing as the creative users of SoundCloud will get to enjoy the complete music library that Spotify has.
If this ever does come true, then it would offer the greatest and most complete online music library known to man. Music is now ever more present within every one of us. It is not anymore limited to cassette tapes, CDs, or DVDs, it is literally everywhere - online.
