Epic Games is the latest game company to make an acquisition, as it formally announces its purchase of music platform Bandcamp for an undisclosed amount.
Venturebeat reports that the acquisition, as per Epic Games Store VP and GM Steve Allison, is due to Bandcamp's community and business that has allowed up and coming creators to succeed due to direct support from fans. This, as per Allison, aligns closely with Epic's own approach which is remarkably similar to that of Bandcamp.
Bandcamp CEO Ethan Diamond confirmed that the company will now work with Epic to help them expand internationally. The merger is reportedly intended to "push development forward" on things like mobile apps, merchandising tools, search and discovery features, and even live streaming services.
But despite the merger, the music platform reiterated that they will remain a "standalone marketplace and music community," according to a post on the Bandcamp blog.
In the post, Diamond reiterated that Epic Games' shares his company's vision of building the world's "most open, artist-friendly ecosystem." He says that with the Epic Games-Bandcamp merger, both organizations will be able to create "even more opportunities to receive fair compensation for their work.
In Support Of Creators
While this acquisition might seem a bit misaligned with what Epic does (they are, after all, a video game company), it's not the first time they acquired a business of Bandcamp's type.
Last year, they purchased the visual art website ArtStation, whose purpose is to serve as a platform where visual artists can share portfolios, as well as buy and sell assets. According to PC Gamer, the acquisition caused ArtStation Learning tutorials to become free, all to the benefit of up-and-coming visual artists out there.
This is also another definitive proof of Epic's apparent interest in the so-called "creator economy," something that already exists in its revenue scheme. Compared to other platforms like Steam, Epic only takes a 12% cut from all game sales (Steam takes a 20-30% cut).
What's The Reason For The Epic Games-Bandcamp Acquisition?
One might assume that Bandcamp's business is not at all related to that of Epic Games. But as per an article by the New York Times, the two companies might have a lot more in common than assumed, which is why the deal makes sense in certain aspects.
As previously mentioned, Epic Games and Bandcamp are all in for ensuring content creators get their fair share. But Epic has also been somehow making waves within Bandcamp's industry, music, with how it has handled collaborations in its hit game "Fortnite."
During the past few years, "Fortnite" has become among the most innovative outlets for musicians to perform and release their content. Just think of the Travis Scott or Ariana Grande in-game concerts, which saw viewership numbers in the millions. If they were able to get those A-list artists onto a highly visible platform, then they can also bring up-and-comers to the same virtual stage.
This article is owned by Tech Times
Written by RJ Pierce
