Rhapsody Bolsters Music Discovery with Strategic Acquisitions
Rhapsody, the veteran music streaming service boasting 2 million paying subscribers, has made two strategic moves to enhance its social music sharing and discovery capabilities. The company announced today the acquisition of Schematic Labs (creator of SoundTracking) and Exfm, signaling a renewed focus on innovative music experiences.
Key Acquisitions:
- SoundTracking: Often described as “Instagram for songs,” this app allows users to share their current listening activity with friends
- Exfm: A previously shuttered social music discovery service that helped users curate web-based MP3 collections
What This Means for Users
SoundTracking will remain operational, with plans to integrate Rhapsody’s extensive 30-million track catalog. Interestingly, the app will maintain its existing Spotify and Rdio integrations, ensuring continued accessibility for users of competing services.
Paul Springer, Rhapsody’s Chief Product Officer, emphasized the strategic value:
“With Soundtracking, they created an entirely new way for people to express themselves by sharing their musical moments. We’re excited to incorporate that creativity and community focus within Rhapsody’s suite of music services.”
Regarding Exfm, Springer noted:
“The Exfm team have done a great job of helping people discover more music across the web. We’re thrilled to have them join Rhapsody to enhance our discovery capabilities.”
Behind the Deals
- Schematic Labs had raised $5.7 million from prominent investors including Accel Partners and Google Ventures
- Exfm secured $2.8 million in funding from Spark Capital and other notable backers before shutting down in May
Competitive Landscape
These acquisitions position Rhapsody to better compete in the crowded music streaming market dominated by Spotify, Apple Music, and Google. By integrating social sharing and advanced discovery features, Rhapsody aims to differentiate itself beyond just catalog size.
Why It Matters:
- Enhances Rhapsody’s social music sharing capabilities
- Brings innovative discovery technology in-house
- Signals Rhapsody’s commitment to competing beyond just streaming catalog size
While details about Exfm’s revival remain unclear, these strategic moves demonstrate Rhapsody’s ambition to innovate in an increasingly competitive space where platform owners often leverage music to drive other business objectives.
