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Spotify To Challenge Clubhouse With Acquisition Of Betty Labs

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After all, Facebook isn’t the only one interested in cloning the audio-based Clubhouse app’s experience. Spotify is the latest to announce its intentions to roll out a similar ‘invention’ – a live audio conversation.

The Swedish streaming and media service earlier today announced the acquisition of Betty Labs, the mother company of the live sports audio app, Locker Room.

While the acquisition comes amid a surge of interest in live audio, Spotify failed to disclose how much it spent to secure Betty Labs.

For now, it isn’t very clear if Spotify’s acquisition of BettyLabs is to develop its own unique in-app live audio service or otherwise.

However, Spotify is reportedly planning to “evolve and expand” the app “into an enhanced live audio experience for a wider range of creators and fans.”

Recall that Betty Labs, sometime in October last year, launched the now-famous Locker Room as a sports-focused platform for live audio conversation.

Whether Spotify will expand the app to accommodate other topics is still not clear; same as whether Spotify will onboard the newly acquired app on its own platform.

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Speaking on the acquisition, Spotify’s chief research and development officer, Gustav Söderström said the new acquisition is in adherence to its users’ demand.

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,” Gustav said.

Spotify will use its machine learning technology to optimise its live audio

To ensure a suitable user experience, Spotify plans to use its machine-learning technology to organise the live audio experience.

In other words, contents will be programmed or perhaps tailored to fit individual users based on their interest; further improving the overall experience.

This additional touch, according to industry experts, will position Spotify’s live audio conversation feature ahead of its competitors, including Clubhouse.

Also, for a start, Spotify could leverage on its existing partnership with its exclusive podcasters that include the likes of Joe RoganBill Simmons and Prince Harry and Megan.

“On-demand programming will maintain supremacy over live audio”

Although Spotify only just acquired Betty Labs and is planning to integrate live audio on its platform, it is not bothered about its supremacy.

Spotify to Challenge Clubhouse with the Acquisition of Betty Labs

CNBC: Daniel Ek, chief executive officer and co-founder of Spotify

According to Spotify founder and chief executive, Daniel Ek on-demand programming will maintain supremacy over live audio.

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However,  the initiative of adding a live service is to give big-name podcasters and the average user the ability to easily and quickly create content conveniently.

Not just that, the conversation can as well be distributed on the go within the podcaster’s network of followers.

The world already turns to us for music, podcasts and other unique audio experiences,” Söderström said.

He added that “this new live audio experience is a powerful complement that would enhance and extend the on-demand experience we provide today.”

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