
No, Soundcloud Won’t Be Forced to Shut Down Due to $44M in Operating Losses - playing_colours
http://dancemusicnw.com/no-soundcloud-wont-shut-down-44m-losses/
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alexandrerond
It's a bit provocative to compare Amazon's chart against Soundcloud's...
Everyone knew Soundcloud is losing money, but unlike Amazon in the last years,
that seems like a lot of money for a company their size and in their
ecosystem. I wish them the best but it doesn't look good...

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brudgers
Amazon is in retail, a notoriously difficult industry. Even today, it does
less than 20% of Walmart's net sales and has less than 10% as many employees.
People wrote the same style of articles about it for years and years. Amazon
is still around because it was growing and could keep raising capital. It did
so through two recessions, no less.

That doesn't mean SoundCloud won't tank. But it will tank because it hits a
wall in terms of growth without a potential revenue model that works at a
large scale.

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alexandrerond
I wonder, was Amazon losing money at the same scale? The graph in the article
shows revenue is huge in contrast to loses, while it keeps growing while
losses are stable. For soundcloud, increase in revenue means an even bigger
increase in losses. That said, I don't know how it was for Amazon at the
beginning. It is clearly that in the last years Amazon was willingly operating
at losses, because it needed AWS to be competitive enough to dominate that
market, so it was clearly an investment in the future rather than a struggle,
from it's strong online retailer position which was making lots of money...

