Now, they want their customers to come together to create music. Spotify has just acquired Soundtrap, an online music maker platform that lets users create and record music from any device using the various tools they provide. Spotify announced the acquisition in a blog post, calling Soundtrap to operate as usual.
"The team of technicians, designers and music producers at Soundtrap has been driving the revolution in the process of creating music by creating various tools for consumers, teachers and students," Spotify wrote in the blog. "The Soundtrap service will work as usual."
Unfortunately Spotify does not announce the amount of money they have to spend to make this acquisition. Soundtrap has offices in Stockholm, Sweden, the same place as Spotify.
Soundtrap uses a subscribed business model. Basic services can be used for free, but users must pay to use the extra tools that allow them to create more projects. Cloud-based software from Soundtrap lets people create music and collaborate with others via online.
Currently Spotify continues to increase its earnings in the hope that it will be able to conduct an initial public offering (IPO). Now Spotify has not made a profit yet, but its finances continue to improve as it adds to their customers.
Unfortunately, subscription fees alone are not enough, considering Spotify's business model requires that they pay to copyright holders whose songs are played on their platforms. Because of this, Spotify is beginning to expand its content to videos and podcasts.
Spotify's decision to acquire Soundtrap demonstrates their interest in getting into the music-making business and providing a new platform for music creators. Though smaller than Soundcloud, Soundtrap has a music creation tool not owned by Soundcloud.