Tuesday, August 16, 2016

Did Daniel Ek Just Say That Spotify Is Buying Soundcloud?

Via Business Insider:

In an exclusive interview with Swedish TV4 this weekend, Spotify's founder Daniel Ek may have given a glimpse of what could be Spotify’s unofficial ten year plan. And when reading between the lines, it seems like Spotify is about to copy or even buy Soundcloud, at least if we believe the analysis of DiDigital's Sven Carlsson.

Here’s what Daniel Ek said:

"During the next ten years we think there will be an incredible increase in the number of people creating music. The barriers for creating music have become much, much lower”.

He continued:

”Today Spotify has two million artists on its platform. To us, the next ten years is all about enabling these artists to make a living out of their music, and connect them with a new audience. Today our users say ”introduce me to new music”. What the artists say is ”help me finding my audience”. Essentially, that’s two sides of the same coin”.

The interviewer then asked if Ek was in fact talking about facilitating a direct dialogue between artists and users. And yup, that’s exactly what Ek meant.

”Yes, trying to connect them and finding opportunities for artists to express themselves and for users to give feedback to the artists”.

What Daniel Ek is looking for - more small-scale artists and more interaction between user and producer - is basically what Soundcloud is all about, notes DiDigital.

While it takes weeks for a small artist to get a song on Spotify, it only takes a minute to upload it on Soundcloud. As soon as it is uploaded, users can comment and interact with the artist.

”The only thing that’s missing on Soundcloud is the ability to make money from your songs. That has never been Soundcloud’s strength. It is however Spotify’s”, DI Digital writes.

Soundcloud is in fact rumoured to be up for sale, and if Daniel Ek really did give us a glimpse of Spotify’s ten year plan, it doesn’t seem like a wild guess that Spotify is considering an acquisition.

Here's the interview (in Swedish) if you want to judge for yourself:

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