The focus on social audio features rose to prominence last year with the launch of Clubhouse, an invite-only app that’s backed by Andreessen Horowitz, which surged in popularity amid the pandemic. Clubhouse has 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 gather in virtual rooms to discuss anything from bitcoin to wellness, looking to recreate in-person conversations.
Now, social media companies are entering the live audio space in an attempt to win some of that market. Twitter entered the competition with “Spaces” and has been rolling 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 reportedly interested in buying the chatting app Discord for about $10 billion.
Spotify said Tuesday that its acquisition will help it leverage the company’s “unparalleled data, insights, and strength in user experience, to build-out a full complement of live and on-demand offerings for users and creators across the globe.”
The Betty Labs deal follows a flurry of acquisitions and deals from Spotify over the past couple of years.