Spotify Acquires SoundBetter, Expanding Its Creator Marketplace Strategy
Spotify has acquired SoundBetter, a marketplace for audio production professionals that connects musicians, producers, and content creators worldwide. The platform currently hosts around 18,000 professionals across 14,000 cities in 176 countries.
Spotify and SoundBetter logos combined
This acquisition appears to be part of Spotify's strategy to expand beyond streaming and enhance its Spotify for Artists platform. The move could help Spotify:
- Facilitate music creation rather than just distribution
- Develop its own IP to reduce royalty costs
- Strengthen its global presence against competitors like Apple, Amazon, and Google
- Create closer relationships with music creators
"As we build out our tools for creators, we want to give them the resources they need to thrive," says Beckwith Kloss, VP Product, Creator at Spotify. "SoundBetter has the same vision."
The acquisition follows Spotify's previous investment in Distrokid, though that distribution partnership was short-lived. This pattern suggests Spotify is actively seeking ways to expand beyond its core streaming business model, which has struggled to achieve profitability.
SoundBetter's marketplace model has proven successful since its 2012 launch, facilitating countless collaborations between audio professionals. However, the specific integration plans into Spotify's ecosystem remain unclear.
This move represents another step in Spotify's broader expansion strategy, following their significant investments in podcasting platforms and content. The company continues to seek new revenue streams beyond traditional music streaming, where it faces intense competition from tech giants who can afford to operate their music services at a loss.