Spotify announced that it will acquire Betty Labs, the company behind the Locker Room, which focuses on live audio.
Spotify is best known for its music streaming business but has expanded into new audio formats while hunting for both a competitive edge in its core market and methods of generating pricing leverage.
The European tech giant has spent heavily in recent years on its podcast efforts, bringing marquee shows to its platform on an exclusive basis. By making its audio-world as differentiated as possible, Spotify may be able to charge more over time, creating future growth opportunities.
The Swedish public company was not shy in describing its goals for the Betty Labs deal, writing on its blog that it will “evolve and expand Locker Room into an enhanced live audio experience for a wider range of creators and fans,” with forthcoming content including “a range of sports, music, and cultural programming, as well as a host of interactive features that enable creators to connect with audiences in real-time.”
Spotify wants to lead all audio categories, it appears, so its planned move into Clubhouse territory should worry current startups in the space.
If Spotify’s distribution advantage of working on every platform, and having a huge install base, will work in its efforts to own a new slice of the audio world is something we’ll find out this year. Until then, if you have an iOS device, you can still use Clubhouse.