Spotify today took another step in its efforts to build out services for artists to help diversify itself away from a business model predicated on paying music streaming royalties to labels: it has acquired SoundBetter, a music production marketplace for artists, producers, and musicians to connect on specific projects; and for people who are looking to distribute music tracks to those who want to license them.
“As we build out our tools for creators, we want to give them the resources they need to thrive. SoundBetter has the same vision,” said Beckwith Kloss, VP Product, Creator at Spotify. “We’re excited that creators can generate income through SoundBetter, as well as benefit from its network of top professionals – from instrumentalists to songwriters to producers – as they perfect their tracks.”
Brooklyn-based SoundBetter, founded in 2012, helps “creators worldwide connect and hire top audio professionals.” The company says it has “helped tens of thousands of music professionals buy and offer services across the globe” and has a community of more than 180,000 artists registered on its network. They have paid out more than $19 million to musicians and producers to date, averaging around $1 million per month currently, itself taking a cut by way of a commission (of an undisclosed percentage) on each deal secured through the platform.
Financial terms of the deal are not being disclosed, meaning it’s unlikely to be a significant sum. New York-based SoundBetter had raised an undisclosed amount of funding from investors including 500 Startups, Foundry Group, Eric Ries and Verizon Ventures. Its last funding — convertible debt from Drummond Road and others — was back in 2015.
You can read the official announcement and accompanying interview with SoundBetter founders below.