As SoundCloud continues to try and build a profitable business, the online music streaming platform has hit some rough patches this past year.
According to SoundCloud's annual filings for the 2013 year, SoundCloud posted $14.1 million in revenues, but a business loss of $29.2 million, putting a total loss of $15 million for the 2013 year.
SoundCloud explained the expenses: “We are in a phase of growing SoundCloud into the market-leading platform for listening to, creating and sharing sound. This has necessitated investment in technology, headcount and marketing. Our overhead base has increased faster than our revenues.”
Just yesterday, we noticed SoundCloud's mobile app beginning to play 15 second audio advertisements on the mobile app. Will the use of advertisements be enough to generate enough revenue for SoundCloud to stay afloat? At this point, we can say that only time will tell.
