Most of us here in SA have become accustomed to not having luxury services such as Netflix or Amazon Prime. Either because our ADSL lines/ Bank accounts aren’t good enough to support it or, in the case of the latter, because we’re on the ass-end of Africa and everything takes 40 weeks to even get here. And those who know exactly what services we are deprived of would know that Spotify is one of them. Now, the people behind the much sought after music streaming service seem to be going after SoundCloud, yet again.
Talks of this acquisition started autumn last year already, but the price SoundCloud put on their empire of sound was a bit rich for Spotify’s taste. However, after SoundCloud managed to raise a whole $100 million this June period, of which Twitter invested $70 million, Spotify reconsidered forking out the cash. I mean, becoming the new owner of a company valued at $700 million isn’t a bad deal at all.
The benefit of having these two companies smooshing
faces bank accounts is that the two’s subscription services are becoming ever more similar to one another, so this combination of the companies would not only bring together subscriber bases but it will also enlarge the pool of talent you can be exposed to.
Maybe this acquisition will see SoundCloud actually make a profit, and ensure an altogether better listening experience for us all, but it will definitely give Apple a run for its money. We’ll keep you informed as this progresses!