People walk past the New York Stock Exchange (NYSE) on the morning the music streaming service Spotify starts trading stocks on the NYSE on April 3, 2018 in New York City.
Spencer Platt | Getty Images
Spotify switches to live audio.
The company announced on Tuesday that it would purchase Betty Labs, the maker of the sports-focused Locker Room live audio social app. Terms of the deal have not been announced.
Spotify shares edged up in the pre-market.
In the coming months, the company announced that it plans to expand Locker Room into an “enhanced live audio experience” for more of its creators and fans.
Spotify is betting on the future of live social audio with its acquisition of Lightspeed Ventures and the company backed by GV.
The focus on social audio features gained prominence last year with the launch of Clubhouse, an invite-only app backed by Andreessen Horowitz, which has grown in popularity amid the pandemic. Clubhouse had been downloaded 12.7 million times as of March 14, according to mobile data and analytics firm App Annie.
Users flocked to the app to congregate in virtual rooms to discuss everything from bitcoin to wellness, seeking to recreate in-person conversations.
Now, social media companies are entering the live audio space in an attempt to win a portion of this market. Twitter entered the competition with “Spaces” and rolled out the feature to more users. Meanwhile, Facebook is also working on a new audio chat product, according to the New York Times. Microsoft is also said to be interested in purchasing the Discord chat app for around $ 10 billion.
Spotify said on Tuesday that its acquisition would help it leverage the company’s “unparalleled data, insights and user experience, to create a full range of live and on-demand offerings for users and creators. of the whole world”.
The Betty Labs deal follows a wave of acquisitions and deals from Spotify over the past two years.
Spotify’s podcast library has been bolstered by high profile deals like its acquisitions of Gimlet Media, Anchor, Parcast and The Ringer. He also expanded his exclusive content by securing the rights to Joe Rogan’s podcast, and he has since signed TikTok influencer Addison Rae, Kim Kardashian West, DC Comics, Michelle Obama, and The Duke and Duchess of Sussex.
Subscribe to CNBC on YouTube.