Spotify is in “advanced” discussions with SoundCloud over a potential acquisition, according to the Financial Times. There is not much information available on the talks, but the publication cites “people briefed on the discussions” as their source on the matter.
The business of streaming has become increasingly competitive following the emergence of Tidal and Apple Music, who have been battling for subscribers through various exclusive releases with artists. Spotify has stayed out of the exclusivity wars, but an acquisition of SoundCloud could possibly help them to maintain their considerable lead in subscribers (40 million to Apple’s 17).
SoundCloud recently launched its own paid streaming service but has not seen the same success as its competitors. Further details will be reported on the proposed acquisition as they become available.
[Story courtesy of Trevor Smith of HNHH]