Spotify and SoundCloud could give EU a boost in tech

In the numbers game of tech, Europe has long been in the shadow of Silicon Valley, with Facebook’s 1.7 billion users, Apple’s $230 billion cash pile and Alphabet’s $20 billion in advertising sales in the last quarter dwarfing the returns of companies across the Atlantic. But the combination of Sweden’s Spotify and Germany’s SoundCloud, being discussed in advanced talks between the two companies… could give the continent a boost in at least one area — music streaming. SoundCloud’s 200 million-strong community, added to Spotify’s 100 million, which includes 40 million paying subscribers, would dwarf their biggest US rival, Apple Music, which has just 17 million paying customers for its service… Beyond the bulking up of numbers, SoundCloud’s unique features also make it appealing to Spotify as an acquisition. Its catalogue of 135 million tracks is larger than any other platform’s, and it boasts original, underground music that other operators lack…

 

Madhumita Murgia

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