Spotify Buys Swedish Music Recording Start-up
Spotify has bought online music and audio recording studio Soundtrap, an online music studio that lets users create music together with others in real time.
The music streaming company has made another acquisition as it continues to build out the services it offers to artists beyond basic streaming. The company announced it last Friday, declining to give financial details of the deal.
"Soundtrap's rapidly growing business is highly aligned with Spotify's vision of democratizing the music ecosystem," Spotify said in a statement.
Soundtrap, based in Stockholm, offers users recording and production studio tools to make music, similar to Apple’s Garageband. The company last year raised $6m year from backers, including Spotify’s former CFO Peter Sterky.
The company’s software works across iOS, Android, Chromebook, Linux, Mac and Windows, allowing uses to record their creations with their own device microphone, then save them to the cloud. They can also collaborate with others in real-time or share their work with friends.
The move signals Spotify’s intentions to not just be a distributor of streaming music and other audio, but also to help facilitate its creation.
It follows several other recent launches also focused on better assisting the artists using its platform, including offering artists real-time streaming data on new releases through a dedicated mobile app. It’s also launched other services in areas like merchandising and events.
Notably, Spotify tried and ultimately walked away from buying Soundcloud, another music streaming platform that is popular with the creator community. This acquisition signals one way that Spotify may be looking to try to address that community, regardless, and that it continues to eye up the opportunity for providing more services for creators alongside distribution.
So far, Spotify has made nine acquisitions since the start of 2016. The biggest deal to date is music data service Echo Nest, which cost Spotify about $60 million. Soundtrap marks Spotify's first acquisition in Sweden since it bought playlist app Tunigo in 2013.
Spotify is said to be preparing a direct listing of shares on Wall Street in the first or second quarter next year.
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