SoundCloud In Talks Of Being Acquired By Spotify
Apple Music has dominated Spotify when it comes to timed exclusives and beat Spotify to Chance The Rapper, Frank Ocean and Drake’s new albums despite Spotify having a user base about double the size of Apple Music. However, it seems as if Spotify isn’t throwing in the towel but looking to find its own edge in the battle of streaming titans.
How so? It has been reported by Financial Times that Spotify is in advanced talks pertinent to acquiring SoundCloud. SoundCloud is also a music streaming service that focuses on independent and emerging artists and is valued at around $700 million. However, so far it has had troubles when it comes to monetizing the service and hasn’t been able to turn a profit ever.
This is not the first time that Spotify has shown interest in SoundCloud, however previous talks that took place earlier this year ceased when it came to SoundCloud’s asking price. Spotify CEO Daniel Ek, according to Financial Times, said in a Swedish TV interview;
“The next decade for us is very much about ensuring that even more of these artists can live on their music, and bringing them together with a new audience. Today our users say ‘introduce me to new music.’ What the artists say is ‘help me finding my audience.’ Essentially, that’s two sides of the same coin.”
It does seem as if Spotify is interested in gaining an edge in the independent music scene before any of its competitors begin capitalizing on it. SoundCloud users are more prone to trying out new music and if Spotify can help with discovering of next Chance the Rapper that could potentially go a long way in its battle with Apple Music.
There’s also a possibility of these talks not being successful, however, if they are successful; we are looking at a drastic paradigm shift for music streaming yet again.