Songtradr, the automated music licensing marketplace, has laid off half of the staff at Bandcamp two weeks after acquiring the online music shop from Epic Games. The acquisition was initially intended to enable Bandcamp artists to opt-in to license their music via Songtradr’s global licensing network, potentially opening up passive income streams through syncs for adverts, film, TV shows, and video games. However, the decision to reduce costs has been made because of significantly higher operating costs.
Songtradr has pledged to maintain the integrity of the Bandcamp platform despite reducing its staff numbers, and the business-to-business music platform has assured the public that the company remains committed to ensuring Bandcamp remains a “sustainable and healthy company”. Despite this, there are concerns that the acquisition could devalue artists’ music commercially if too many opt-in to license their music via Songtradr’s global network.
The acquisition marks the second time in 18 months that Bandcamp has been bought. In 2022, Epic Games acquired the company before laying off 16% of staff and selling the business to Songtradr in a bid to address concerns about overspending. In response to the latest layoffs, former senior editor JJ Skolnik expressed his sadness at the situation after eight years of working at Bandcamp. Bandcamp United, a union of Bandcamp workers, has also announced it is planning to return to the bargaining table with Epic Games following the job cuts.
As reported by Rolling Stone, Songtradr says that the decision to lay off half of the Bandcamp staff was made after it conducted a comprehensive evaluation of the relevance and importance of the existing functions that Songtradr already performs. While individuals may have reservations about the long-term implications of the recent acquisition, Songtradr has stated that it is also committed to bringing the Bandcamp platform back to its original roots through popular services such as Bandcamp Friday and Bandcamp Daily
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