Some MAJOR music news is coming out of the music industry today as it has been reported that music streaming provider Spotify are in talks to buy rival Soundcloud.
According to the Financial Times, the companies are currently in advanced negotiations, though a price is unclear at the moment and insiders also suggest that talks could still collapse. The talks between Spotify and Soundcloud are said to have emerged as Spotify faces increasingly heated competition from rivals Apple Music and Amazon.
Soundcloud is unique as it allows users to upload their music and share across the internet. After facing an increased number of copyright protection problems, Soundcloud launched its ‘pay for streaming’ service last year – however they failed to make a profit. Spotify made revenue of $2.2 billion (£1.5 billion) over the last year, but they too failed to make a profit.
But the idea of purchasing one of your biggest rivals makes sense – especially as Soundcloud offer music lovers a very different platform for consuming and providing music. This could work out in Spotify’s favour with the potential to create a super-charged music platform with both the vibrant community of SoundCloud and the very complete music library of Spotify!
Stay tuned to BritAsia TV for more entertainment stories!