Spotify sold its music-making app Soundtrap to founders Per Emanuelsson and Bjorn Melinder just over five years after the streamer bought it for an estimated $30 million at the time.
Spotify’s decision to move away from music production addresses the music glut caused by the 120,000 songs uploaded daily by major labels to streamers, mostly by DIY artists using apps like Soundtrap. done when asked to do so.
The music-making space is also getting more crowded with the release of dozens of AI-powered tools and the announcement that competitor BandLab has over 60 million users.
Details of the deal were not disclosed.
“Soundtrap was built to provide the best collaboration platform for making music online.” Soundtrap CEO and Co-Founder Per Emanuelsson in a statement. “Together with Soundtrap co-founder Björn Melinder, we have decided to acquire the company from Spotify and return to independent operations. It’s been a huge boon, allowing us to quickly expand our service and launch new products.Thank you Spotify for keeping us on the track we’re on today and I’m so excited for the future. .”
“Soundtrap continues to make great strides in enabling more people to collaborate and make music online.” Charlie Hellman, Vice President Global Head of Music Products at Spotify. “We are proud of what we have achieved together so far and look forward to seeing the next stage of growth for Soundtrap over the next few years.”
Bruce Horton Founder and Editor of Hypebot, Senior Advisor at Bandsintown, President of Skyline Artists Agency, and Professor at Berklee College of Music.