Buying SoundBetter is the easy part. Now Spotify's has to find out what to do with it.
And Spotify's latest acquisition?
It would be SoundBetter, a professional audio production marketplace that has quietly facilitated collaborations since 201
It's a well worn internet market idea with a musical twist – and obviously good performance. But exactly why Spotify, a streaming music company, wants to acquire a company like SoundBetter is unclear at first.
At the beginning, Spotify seems intent on rounding up its artist services, with Spotify for artists in focus.
shifts focus from recording and collecting millions of songs to help facilitate the creation of music,
"As we expand our tools for creators, we want to give them the resources they need to thrive," Beckwith conveyed Kloss, VP Product, Creator at Spotify. “SoundBetter has the same vision. We are delighted that the creators can generate revenue through SoundBetter, as well as benefit from their network of top professionals – from instrumentalists to songwriters to producers – when they perfect their tracks. "
SoundBetter founder and CEO Shachar Gilad says his company is now spread across 14,000 cities and 176 countries. He declared SoundBetter as "the most comprehensive global market for music and audio production professionals to hire in the world," with Spotify apparently agreeing. In fact, Spotify desperately needs to establish its global footprint, with powers such as Apple, Amazon and Google already enjoying a wide world-wide infrastructure.
SoundBetter sounds like a rich community, but it is still unclear how Spotify plans to integrate SoundBetter into its broader business model. The quicker version is that Spotify will better engage musicians and professionals while drawing them closer to the Spotify platform. This means creating music in collaboration with Spotify, making it a more important streaming platform for creators.
It sounds like the intention behind Spotify's latest investment in Distrokid.
The ultra-successful Distrokid, aided by Philip Kaplan, has rattled the cage from more established distributors such as CD Baby (now owned by Downtown Music Publishing) and TuneCore for several years. But Spotify killed its ambitious distribution plans after just a few months, suggesting a fight on Spotify to expand its core business model.
Interestingly, Digital Music News first mentioned SoundBetter back in 2014, and we have made some inquiries about the company since that point. But we didn't really expect Spotify to turn in – but given the company's expansive travels to areas such as podcasting and distribution, perhaps any game that could expand the company's core model.