Tag: Acquisition

Spotify Continues to Ramp Up Platform Safety Efforts with Acquisition of Kinzen

October 5, 2022

Spotify and Kinzen logos

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Today, Spotify is excited to share that we have acquired Dublin, Ireland-based Kinzen, a global leader in protecting online communities from harmful content. Kinzen’s advanced technology and deep expertise will help us more effectively deliver a safe, enjoyable experience on our platform around the world. 

Spotify’s current partnership with Kinzen, which began in 2020, has been critical to enhancing our approach to platform safety. The company’s unique technology is particularly suited for podcasting and audio formats, making its value to Spotify clear and unmatched. The technology the Kinzen team brings to Spotify combines machine learning and human expertise—backed by analysis from leading local academics and journalists—to analyze potential harmful content and hate speech in multiple languages and countries. 

“We’ve long had an impactful and collaborative partnership with Kinzen and its exceptional team. Now, working together as one, we’ll be able to even further improve our ability to detect and address harmful content, and importantly, in a way that better considers local context,” said Dustee Jenkins, Spotify’s Global Head of Public Affairs. “This investment expands Spotify’s approach to platform safety, and underscores how seriously we take our commitment to creating a safe and enjoyable experience for creators and users.”

Given the complexity of analyzing audio content in hundreds of languages and dialects, and the challenges in effectively evaluating the nuance and intent of that content, the acquisition of Kinzen will help Spotify better understand the abuse landscape and identify emerging threats on the platform.

“The combination of tools and expert insights is Kinzen’s unique strength that we see as essential to identifying emerging abuse trends in markets and moderating potentially dangerous content at scale,” said Sarah Hoyle, Spotify’s Head of Trust and Safety. “This expansion of our team, combined with the launch of our Safety Advisory Council, demonstrates the proactive approach we’re taking in this important space.”

Spotify to Acquire Leading Audiobook Platform Findaway

November 11, 2021

In 2019, Spotify announced its ambition to become the world’s leading audio platform with an expansion into podcasting through the acquisitions of Anchor and Gimlet. Since then, Spotify has not only become a leading platform for podcast creators and listeners, but also expanded on the very format of podcasting itself: taking a fixed format and making it a new audio experience. And today we are taking another step in furthering this mission to build the future of audio by announcing that Spotify has entered into a definitive agreement to acquire Findaway, a global leader in digital audiobook distribution.

“It’s Spotify’s ambition to be the destination for all things audio both for listeners and creators. The acquisition of Findaway will accelerate Spotify’s presence in the audiobook space and will help us more quickly meet that ambition,” said Gustav Söderström, Spotify’s Chief Research & Development Officer. “We’re excited to combine Findaway’s team, best-in-class technology platform, and robust audiobook catalog with Spotify’s expertise to revolutionize the audiobook space as we did with music and podcasts.”

Findaway works across the entire audiobook ecosystem with a platform and offerings that serve authors, publishers, and consumers of this rapidly growing industry, which is expected to grow from $3.3 billion to $15 billion by 2027. In addition to offering the largest catalog of distributed titles, Findaway has actively worked to democratize audiobooks through leading technology tools available for independent authors to create and bring their stories to life. We plan to build on Findaway’s significant innovation in the space, and we’re going to supercharge its growth, bringing everything Spotify knows around personalization and discovery while also innovating on format, delivery, creator tools, and more.

Together, Spotify and Findaway will accelerate Spotify’s entry into the audiobook space and continue to innovate the industry, working to remove current limitations and unlock better economic tools for creators. Findaway’s technology infrastructure will enable Spotify to quickly scale its audiobook catalog and innovate on the experience for consumers, simultaneously providing new avenues for publishers and authors to reach audiences around the globe.

*Terms of the transaction were not disclosed. It is expected to close in the fourth quarter of 2021 and is subject to regulatory review and approval. 

 

Forward-Looking Statements

We would like to caution you that certain of the above statements represent “forward-looking statements” as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. The words “will,” “expect,” and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding the potential benefits of the acquisition and the anticipated timing of the closing of the acquisition. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with the safe harbor provisions. Such forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections, including but not limited to the risks as set forth in our filings with the United States Securities and Exchange Commission. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date hereof.

Spotify Acquires Locker Room and Announces Plans for a New Live Audio Experience

March 30, 2021

During Spotify’s first-ever Stream On event last month, we explored the journey of creation, the promise of interactivity, and the investments we’re making to further unlock audio’s potential. Today, we are announcing that Spotify has acquired Betty Labs, the creators of Locker Room, a live audio app that’s changing the way insiders and fans talk about sports. This acquisition* builds on our work to create the “future formats of audio” and will accelerate Spotify’s entry into the live audio space. 

“Creators and fans have been asking for live formats on Spotify, and we’re excited that soon, we’ll make them available to hundreds of millions of listeners and millions of creators on our platform,” said Gustav Söderström, Chief Research & Development Officer at Spotify. “The world already turns to us for music, podcasts, and other unique audio experiences, and this new live audio experience is a powerful complement that will enhance and extend the on-demand experience we provide today.” 

In the coming months, Spotify will evolve and expand Locker Room into an enhanced live audio experience for a wider range of creators and fans. Through this new live experience, Spotify will offer 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. We’ll give professional athletes, writers, musicians, songwriters, podcasters, and other global voices opportunities to host real-time discussions, debates, ask me anything (AMA) sessions, and more. 

Betty Labs is a forward-leaning team of developers, engineers, product thinkers, and sports fans focused on creating groundbreaking live experiences. The company, which was initially backed by Lightspeed Venture Partners, and more recently by GV and Precursor Ventures, first introduced Locker Room to sports fans in October 2020. Looking ahead, Spotify will leverage its 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.  

“We are excited to join forces with Spotify and contribute to building the future of audio—we’ll invest more in our product, open the experience to Spotify’s audience, diversify our content offerings, and continue expanding the community we’ve built,” said Betty Labs Founder and CEO Howard Akumiah. “With Spotify, we’ll continue to offer the best home for sports fans and use the lessons we’ve learned along the way to create the ultimate destination for live conversation around music and culture.”

Interested in learning more? Check back here in the coming months for all the latest news and updates.

*Terms of the transaction were not disclosed.

Forward-Looking Statements

This blog post contains estimates and forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible,” and similar words are intended to identify estimates and forward-looking statements. 

Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our businesses and operations. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to numerous risks and uncertainties and are made in light of information currently available to us. Many important factors may adversely affect our results as indicated in forward-looking statements. These factors include, but are not limited to: our ability to attract prospective users and to retain existing users; competition for users, user listening time, and advertisers; risks associated with our international expansion and our ability to manage our growth; our ability to predict, recommend, and play content that our users enjoy; our ability to effectively monetize our Service; our ability to generate sufficient revenue to be profitable or to generate positive cash flow and grow on a sustained basis; risks associated with the expansion of our operations to deliver non-music content, including podcasts, including increased business, legal, financial, reputational, and competitive risks; potential disputes or liabilities associated with content made available on our Service; risks relating to the acquisition, investment, and disposition of companies or technologies; our dependence upon third-party licenses for most of the content we stream; our lack of control over the providers of our content and their effect on our access to music and other content; our ability to comply with the many complex license agreements to which we are a party; our ability to accurately estimate the amounts payable under our license agreements; the limitations on our operating flexibility due to the minimum guarantees required under certain of our license agreements; Spotify Technology S.A. 42-44 avenue de la Gare, LU-1610 Luxembourg 10 our ability to obtain accurate and comprehensive information about the compositions embodied in sound recordings in order to obtain necessary licenses or perform obligations under our existing license agreements; new copyright legislation and related regulations that may increase the cost and/or difficulty of music licensing; assertions by third parties of infringement or other violations by us of their intellectual property rights; our ability to protect our intellectual property; the dependence of streaming on operating systems, online platforms, hardware, networks, regulations, and standards that we do not control; potential breaches of our security systems; interruptions, delays, or discontinuations in service in our systems or systems of third parties; changes in laws or regulations affecting us; risks relating to privacy and data security; our ability to maintain, protect, and enhance our brand; payment-related risks; our ability to hire and retain key personnel; our ability to accurately estimate our user metrics and other estimates; risks associated with manipulation of stream counts and user accounts and unauthorized access to our services; tax-related risks; the concentration of voting power among our founders who have and will continue to have substantial control over our business; risks related to our status as a foreign private issuer; international, national or local economic, social or political conditions; risks associated with accounting estimates, currency fluctuations and foreign exchange controls; and the impact of the COVID-19 pandemic on our business and operations, including any adverse impact on advertising revenue or subscriber revenue. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from our estimates and forward-looking statements is included in our filings with the U.S. Securities and Exchange Commission (“SEC”), including our Annual Report on Form 20-F filed with the SEC on February 5, 2021, and subsequently filed SEC filings. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this shareholder letter.