It has recently been reported in the Financial Times that Spotify are in advanced talks with rival SoundCloud regarding a $700 million take over.
The reports are hardly surprising given that the streaming music sector is experiencing increased levels of competition.
Spotify from Sweden, are undoubtedly the market leader but they are facing ever increasing competition from Amazon and Apple Music.
SoundCloud, based in Germany, grew in popularity as it enabled artists to easily upload their music and share it on blogs and across social media.
SoundCloud are certainly an influential player in the music industry, especially within the dance genre and launched a pay-for streaming service similar to that offered by Spotify and Apple Music back in March of this year.
Disappointingly from SoundCloud’s point of view is the fact that so far they have been unable to make a profit.
Spotify has also failed to make a profit despite seeing revenues increase to $2.2bn in the last twelve months.
Presently, the platform offers free music over the internet that is accompanied by adverts or alternatively an ad-free version for a fixed monthly rate.
Spotify currently has around 100 million users worldwide, 40 million of which are paying subscribers. By comparison, rival Apple music has around 17 million subscribers.