Soundcloud, the site which aims to be YouTube for music and audio content, is in financial trouble, having lost €62.1m (£48.2m/$70.3m USD/$98.7m AUS) over two years.
Ars Technica reports that the board of directors has warned of “material uncertainties facing the business”.
The reason? Despite having around 175m users by the end of 2014, the average revenue per user was just 11.2 cents. Yikes.
Last month, the company apparently had to beg another $32m from its funders in order to keep things going.
Facing the music
The site has tried to monetise audio by partnering with record labels and rights holders but this has not alleviated the problem.
At the moment, the business model is based on a freemium model, offering uploaders a certain number of free minutes to upload their tracks – before requiring them to pay for more.