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"Let's force ourselves to be profitable right now, regardless of the fact that it will destroy our future profitability" Soundcloud just had a similar shock ha
by hobofan 9y ago
"Let's force ourselves to be profitable right now, regardless of the fact that it will destroy our future profitability"
Soundcloud just had a similar shock happen, and after all the people they had to fire, I would not be surprised if that will kill the company in the mid-term, even with their new investment. If you have no ability to innovate due to missing staff, there is a good chance that your competitors will eat you alive.
- ProAm 9y ago10+ years of losing money.
- bm1362 9y agoI think SoundCloud's downfall would be it's huge investment into record label deals, it's paywalling to support said deals and then the lack of adoption for it's subscription service for access to those label's music. Essentially, SC tried to pivot to Spotify, pissed off free users, and let it's actual paying user base stagnate for 2 years. Then all that capital investment had no return and they're stuck in big contracts with hefty guaranteed payouts.