SoundCloud is losing money faster as it grows. While the popular music sharing and streaming service based in Berlin posted a turnover of $14.1 million in 2013 (a 40% increase from the previous year’s revenues), its operating loss in the period more than doubled to $29.2 million in 2013 from $15.8 million in 2012.
“We are in a phase of growing SoundCloud into the market-leading platform for listening to, creating and sharing sound,” the company notes in its annual filings. “This has necessitated investment in technology, headcount and marketing. Our overhead base has increased faster than our revenues.”
The company is also at a deadlock at negotiations with Sony, Universal, and Warner over royalties for unauthorized uploads. “Deals with labels have been complex because they are about more than about advertising alongside content hosted and consumed on SoundCloud. There is also the issue of paying out royalties for licensed music that gets listened to on SoundCloud.”
However, SoundCloud and social media giant Twitter launched today a feature enabling content creators to utilize Twitter “Audiocards” to deliver music right into their followers’ Twitter timelines on iOS and Android by hitting a play button within the Twitter app. Audiocards for the time being are exclusive to Twitter’s mobile platforms and not yet available on the desktop.