Things have looked dire at times this year for the dance enthusiast’s favorite streaming platform SoundCloud , with its overdue major label deals and subscription service launch failing to quell the kind of copyright issues that are really pissing artists off . With monetization lingering as a huge problem for SoundCloud, they’ve been given a hand this week by tech colleague Twitter .
Recode broke the news that Twitter has invested $70 million into the streaming platform, which was part of a fundraising round that tops out somewhere around $100 million. Twitter CEO Jack Dorsey confirmed that his company now owns a stake in SoundCloud.
“Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators,” Dorsey told Recode . “They've been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”
Meanwhile, SoundCloud confirmed the investment via a statement.
“This investment will enable SoundCloud to remain focused on building value for creators and listeners alike, and to continue the global rollout of many company initiatives such as our recently launched subscription service, SoundCloud Go.”
The news comes at a time when SoundCloud’s costs are certainly exceeding its revenues. The company’s February earnings report showed that while earnings had grown by more than 50 percent to reach $19.7 million, its losses had meanwhile nearly doubled to $41.8 million.
