Why Microsoft should buy soundcloud (or Spotify)

kevon skat pedersen

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Aug 2, 2016
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Microsoft groove Music is struggling. The user base is unknown, but small.

Most people haven't even heard of it.

I wouldn't directly say that it was behind on features. Spotify and the like has features groove doesn't, but the same goes the other way around.

But one thing groove is missing - mostly due to the small size. That is smaller/independent artists. Those who upload the music themselves.

To contact each artist and ask for their music is too labor intensive.

Soundcloud is the home of independent music. By buying them out, they would gain access to their catalog - same goes for Spotify.

Both companies are struggling to make money (they are burning through it, at a rate that some argue bankruptcy is a possibility).

One of the costs of both companies - although not the largest, but a large one, is hosting the music, and delivering it to the end user.

Microsoft has a lot of serverpower, that they most likely rent to those same companies. Unless they rent it from somewhere else. Those places make a profit when renting out their servers.

Microsoft would be able to lower those costs, if they owned it.

Those two factors combined would make Microsoft able to make a competitive music streaming service, and not just a "Spotify us not on our platform, so we have to offer something"

What do you think?
 

libra89

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This is an interesting idea, and I think it's a fair one. I don't think Spotify is struggling. According to a recent news story, they actually have more paid subscribers over Apple Music.

For Soundcloud, I think this could be an interesting for them. One reason why I don't do Groove is because they have too many holes for what I listen to. I like old and new music from select artists, and it's not enough for me to just have one but not the other.

My thoughts are mixed here. I could see it with SoundCloud but at the same time, it's hard to tell if the tradeoff would actually be worth it...
 

naddy6969

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"Why Microsoft should buy soundcloud (or Spotify)"

Ha ha. Good stuff.

Today, the question is totally absurd. Spotify will never be For Sale. Even if it was, they would never sell out to Microsoft, and MS would never be interested in buying it.

How things have changed in 2 years. Back then, people actually thought MS was a consumer oriented company. They never were, and never will be.
 

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