juannomore / Flickr CC

Streaming service Soundcloud will lay off 40% of its staff and close offices in San Fransisco and London, Bloomberg reports. The company says they're cutting down to get close to profitability, with the aim of staying independent. Earlier this year, Recode reported that Soundcloud had been unsuccessfully trying to raise $100 million in funding since the summer, and was talking to potential buyers, including Spotify, who opted not to buy the streaming service last year.

Why it matters: Soundcloud has always had a massive music library and audience, but they've never been able to turn that into cash. And with an unstable business model, it's struggled to remain competitive with Spotify and Apple Music.

The bigger picture ... The music streaming business is a bloodbath right now: Spotify, Pandora and SoundCloud aren't profitable despite having massive and engaged audiences. Here's a look at how complicated and rocky the landscape is right now.

  • Spotify has100 million users and is reportedly planning a direct listing on the NYSE as early as this fall.
  • Apple Music, which has 27 million subscribers, will start to play a large role in Apple's push to increase its $28 million services business by 2020. It recently asked record publishers to take a smaller revenue cut to expand margins.
  • Soundcloud has 175 million listeners and boasts one of the largest music libraries in the market, but has never been quite able to create a sustainable business model.
  • Pandora, which has 81 million users, is reportedly in talks with SiriusXM about a potential acquisition. The nation's largest satellite radio provider agreed to make a $480 million minority investment into Pandora in June. Its CEO recently stepped down and on Thursday, it announced it is ditching its premium subscription plans.
  • IHeartRadio, which has over 100 million registered users for its streaming service, announced last month it expects bankruptcy this year.
  • Tidal (Jay-Z's streaming service) sold 1/3 of its stake to Sprint earlier this year in the wake of financial turbulence. Tidal has three million reported subscribers, and some say that number may be inflated.

Our thought bubble: These platforms have massive, loyal audiences who are mostly consuming their content on mobile. While it makes sense that other streamers could want to consolidate to build market share, a legacy media or entertainment company (think Viacom, Disney, etc.) with virtually no direct-to-consumer mobile business, would be a great suitor.

Go deeper

Biden clarifies comments on African American and Latino communities

Joe Biden delivering a speech in Delaware in July. Photo: Mark Makela/Getty Images

Joe Biden explained on Twitter Thursday night what he "meant" by earlier comments suggesting that "the African American community is a monolith."

What they're saying: "Unlike the African-American community, with notable exceptions, the Latino community is an incredibly diverse community with incredibly different attitudes about different things," Biden remarked in an interview hosted by the National Association of Hispanic Journalists and the National Association for Black Journalists, Politico reports.

Updated 7 hours ago - Politics & Policy

Ohio Gov. Mike DeWine tests negative for coronavirus after positive result

Photo: Justin Merriman/Getty Images

Ohio Gov. Mike DeWine (R) tested negative for the coronavirus after initially testing positive earlier Thursday, his office announced.

Why it matters: 73-year-old DeWine was set to meet President Trump Thursday on the tarmac at an airport in Cleveland and was tested as part of standard protocol.

Updated 7 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Eniola Odetunde/Axios

  1. Global: Total confirmed cases as of 9:30 p.m. ET: 18,996,008 — Total deaths: 712,476— Total recoveries — 11,478,835Map.
  2. U.S.: Total confirmed cases as of 9:30 p.m. ET: 4,877,115 — Total deaths: 159,990 — Total recoveries: 1,598,624 — Total tests: 59,652,675Map.
  3. Politics: Pelosi rips GOP over stimulus negotiations: "Perhaps you mistook them for somebody who gives a damn" — Ohio Gov. Mike DeWine tests positive.
  4. Public health: Majority of Americans say states reopened too quicklyFauci says task force will examine aerosolized spread Study finds COVID-19 antibodies prevalent in NYC health care workers.
  5. Business: The health care sector imploded in Q2More farmers are declaring bankruptcyJuly's jobs report could be an inflection point for the recovery.
  6. Sports: Where college football's biggest conferences stand on playing.