Music steaming service Soundcloud have announced annual losses of more than £18million from last year, due to a rapidly expanding new business model from the company.
While it still produced a turnover of £8.8m in the last year, the cause for the massive loss comes down to a number of factors, which Soundcloud explained in the following statement:
"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.”
While the German-based company still seems optimistic about its future, major labels Warner, Sony and Universal have held back on a deal with the site after they were unhappy with the terms proposed by SoundCloud to license their music.