Spotify To Acquire SoundCloud: New 'Spoticloud' Could Beat Up Apple Music

Swedish music-streaming Company Spotify is reportedly in advanced talks to acquire SoundCloud. Though the latter company isn't that much a success, but it's the YouTube of Music. In the competition heat with Apple for the future of digital music, it seems quite obvious why Spotify would acquire SoundCloud.

The Financial Times reported on Wednesday about Spotify being in talks regarding acquisition with the German rival that raised $100m from a group of investors including Twitter in June.It is pretty much unclear how Spotify wishes to pay for the acquisition. Spotify has declined to comment on the same whereas the officials from Soundcloud could not be immediately reached.

Here's why it makes sense for Spotify to buy SoundCloud https://t.co/MIpHZtApc6

— TIME (@TIME) September 29, 2016

Going Down For Real?

SoundCloud is probably the only streaming service providing DJ remixes that kids love. Creators are free to upload music to its biggest catalog in streaming, covering over 125 million tracks. With comparison to this, there are only about 30 million tracks on Apple Music and Spotify combined, states TechCrunch. A deal between Spotify and SoundCloud is a must as Silicon Valley titans including Apple and Amazon have launched their own music streaming services.

It is quite surprising that even after being home to a 200m-strong creative community, the latter company has never been able to turn a profit. Spotify officials said that the streaming site was viewed as a threat before the launch of its standard $9.99 option known as Sound-Cloud Go earlier this year, after which it has lost all its chances of independent success.

[Article] Spotify Reportedly In Talks To Buy SoundCloud https://t.co/ubrNqoVxxd via #HNHH — HIPHOPPOST (@HHPST) September 29, 2016

What would the Deal Mean?

According to Bloomberg, Spotify has tried to buy it twice over the past two years but the deals broke down over pricing. Soundcloud's biggest strength is the community of creators who built it, with an extensive catalog of music. Since its $9.99 subscription service flopped, the acquisition has become a less risky and cheaper deal for Spotify.

Independent digital music companies are falling due to bigger companies taking over the streaming sites, despite growing music revenues in nearly two decades. However, if Spotify acquires the Music Streaming company, it could finally have the weapon to defeat Apple Music.After the deal is done it won't matter how much Apple pay big performers for early access to their tracks, it still wouldn't have the as large catalog as SpotiCloud.