Spotify has acquired music production marketplace SoundBetter for an undisclosed sum, in an attempt to diversify beyond streaming, and continue to offer services to musicians themselves, according to a report by TechCrunch.
The move is meant to continue to build out services for musicians and try and find new revenue streams. SoundBetter is a place where artists, producers and musicians can connect and sell services to each other, kind of like a Fiverr for music.
Right now, SoundBetter has around 180,000 registered users, and has paid out around $19 million to producers and musicians so far, averaging about $1 million a month. The company takes a commission from each transaction, and that amount is undisclosed.
The terms of the acquisition were also not disclosed. Spotify is worth about $24 billion and has around 232 million users, about 108 million of which are premium subscribers.
SoundBetter has raised money from a notable group of investors, including 500 Startups, Foundry Group, Eric Ries and Verizon Ventures. It’s last funding round was in 2015.
The marketplace was founded in 2012 by CEO Shachar Gilad and CTO Itamar Yunger. In June, the company launched “Tracks,” which allowed for the licensing of finished music.
Spotify is not shutting down the service, and a spokesperson said the two companies will be working to integrate SoundBetter into Spotify for Artists, a service that gives musicians analytics and services to market better.
“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.”
SoundBetter’s Gilad said he was excited about the prospect.
“SoundBetter offers the most comprehensive global marketplace for music and audio production professionals for hire in the world along with a member community spanning 176 countries and 14,000 cities worldwide,” Gilad said. “We are excited to benefit from Spotify’s global scale, resources, and vision to expand our network and drive more economic opportunities for artists of all levels.”