15 June 2016
Twitter has previously tried to integrate music into its product and in 2014 considered buying SoundCloud.
Instead of buying, Twitter Inc. has invested, according to Recode, about $70 million in SoundCloud Ltd. to help the Berlin-based music streaming business expand its paid offering.
“Earlier this year, we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators,” Mr. Dorsey, Twitter CEO said. “They’ve been great partners of ours over the years, and their community-supported approach mirrors ours in many ways.”
SoundCloud on Wednesday in an e-mailed statement confirmed that Twitter has made an investment. They however didn’t comment on specifics or value of the investment.
SoundCloud said that the money will be used to “continue the global roll-out of many company initiatives such as our recently launched subscription service, SoundCloud Go.”
SoundCloud has over the years engaged a large fraction of the record music industry but has lately been under pressure to develop a paid service after failure to turn it’s wide base to a sustainable revenue stream.
Since then, SoundCloud has struck new licensing deals with record companies and publishers, helping to legitimise the services with the mainstream music business.
In March, SoundCloud introduced its long-promised subscription service, SoundCloud Go, making a catalog of more than 125 million songs available to people at $10 a month, with a free version supported by advertising.