Los Angeles-based B2B music licensing firm Songtradr is buying Bandcamp from Epic Games.
Songtradr says it can proceed to function Bandcamp as a market and music neighborhood with an “artist-first income share”.
The information arrives a yr and a half after Epic Video games (the maker of the hit online game Fortnite, and Unreal Engine) acquired Bandcamp – an internet music retailer and direct-to-fan platform.
In line with a press launch issued by Songtradr on Thursday (September 28), Bandcamp is utilized by over 5 million artists and labels.
The discharge provides that “this acquisition will assist Bandcamp proceed to develop inside a music-first firm and allow Songtradr to broaden its capabilities to assist the artist neighborhood”.
Songtradr says it can additionally supply Bandcamp artists “the power and option to have their music licensed to all types of media together with content material creators, sport and app builders and types”.
It provides that “this can allow artists to proceed to personal and management their music rights, and improve their incomes capability from Songtradr’s international licensing community”.
Elsewhere, the press launch notes that Epic is exploring methods to companion with Songtradr to “construct a list of music” the place artists can opt-in to have their music licensed to be used in Epic’s ecosystem.
Epic says it can proceed to collaborate with Bandcamp on tasks like Fortnite Radio and can also be investing in Songtradr to assist Bandcamp’s “profitable integration into Songtradr”.
“The acquisition of Bandcamp will assist Songtradr proceed to develop its suite of companies for artists. I’m a passionate musician myself, and artistry and creativity have at all times been on the coronary heart of Songtradr.”
Paul Wiltshire, CEO of Songtradr, mentioned: “The acquisition of Bandcamp will assist Songtradr proceed to develop its suite of companies for artists. I’m a passionate musician myself, and artistry and creativity have at all times been on the coronary heart of Songtradr.
“Bandcamp will be part of a workforce of music business veterans and artists who’ve deep experience in music licensing, composition, rights administration, and distribution.”
“Songtradr shares Epic and Bandcamp’s values round making certain artists are pretty compensated for his or her work.”
Steve Allison, Epic Video games
Steve Allison, Vice President and Normal Supervisor, Retailer at Epic Video games, mentioned: “Songtradr shares Epic and Bandcamp’s values round making certain artists are pretty compensated for his or her work.
“Bringing Bandcamp to Songtradr will make it simpler for impartial artists to attach with creators and builders seeking to license their music and allow Epic to concentrate on its core metaverse, video games, and instruments efforts.”
The information comes as Epic Video games at the moment confirmed it was shedding 16% of its international workforce whereas divesting Bandcamp. You possibly can learn the complete be aware despatched out by Epic Video games CEO Tim Sweeney beneath.
Hello everybody,
As we shared earlier, we’re shedding round 16% of Epic workers. We’re divesting Bandcamp and spinning off most of SuperAwesome.
For some time now, we’ve been spending far more cash than we earn, investing within the subsequent evolution of Epic and rising Fortnite as a metaverse-inspired ecosystem for creators. I had lengthy been optimistic that we might energy by this transition with out layoffs, however on reflection I see that this was unrealistic.
Whereas Fortnite is beginning to develop once more, the expansion is pushed primarily by creator content material with vital income sharing, and it is a decrease margin enterprise than we had when Fortnite Battle Royale took off and commenced funding our enlargement. Success with the creator ecosystem is a good achievement, however it means a significant structural change to our economics.
Epic of us all over the world have been making ongoing efforts to cut back prices, together with transferring to internet zero hiring and slicing working spend on issues like advertising and marketing and occasions. However we nonetheless ended up far wanting monetary sustainability. We concluded that layoffs are the one manner, and that doing them now and on this scale will stabilize our funds.
We’re additionally making some divestitures. Bandcamp is becoming a member of Songtradr, a music market firm supporting artists. SuperAwesome’s promoting enterprise will turn into an impartial firm beneath the SuperAwesome model, led by their present CEO Kate O’Loughlin. Children Internet Companies (KWS), the mother or father verification and consent administration toolset, will stay a part of Epic.
Saying goodbye to individuals who have helped construct Epic is a horrible expertise for all. The comfort is that we’re adequately funded to assist laid off workers: we’re providing a severance package deal that features six months base pay and within the US/Canada/Brazil six months of Epic-paid healthcare. We’re providing to speed up folks’s inventory possibility vesting schedule by the tip of 2024 and are giving two further years from at the moment to train the choices. Within the US we’re additionally providing to vest any unearned revenue sharing from their 401k. And we’ll present advantages together with profession transition companies and visa assist the place we are able to.
For these nonetheless at Epic, you’ll hear extra from senior leaders in regards to the path ahead on your workforce. Epic’s prospects for the longer term are robust. We now have superb sport experiences throughout a number of platforms. We’ve constructed the perfect engine on the planet, and will probably be internet hosting Unreal Fest subsequent week to deliver the neighborhood collectively and highlight the issues they’re constructing with Unreal Engine and UEFN. Creators are making a residing constructing for the Fortnite ecosystem, with time in third-party video games now exceeding first-party.
We’re slicing prices with out breaking improvement or our core strains of companies so we are able to proceed to concentrate on our formidable plans. About two-thirds of the layoffs have been in groups outdoors of core improvement. A few of our merchandise and initiatives will land on schedule, and a few could not ship when deliberate as a result of they’re under-resourced in the meanwhile. We’re happy with the schedule tradeoff if it means holding on to our capacity to realize our objectives, get to the opposite facet of profitability and turn into a number one metaverse firm.
