Title: Bandcamp Faces Layoffs as Epic Sells Platform to Songtradr
Subtitle: Songtradr Commits to Maintaining Artist-First Revenue Share and Bandcamp’s Services
Date: October 16, 2023
In a surprising turn of events, Bandcamp, the popular indie music marketplace, is undergoing significant changes as Epic sells the platform to licensing company Songtradr. This marks the second ownership shift for Bandcamp in less than two years, with Epic acquiring the company in March 2022.
The sale of Bandcamp comes with unfortunate consequences, as around 50 percent of the platform’s staff members have been laid off. Notably, numerous employees from Bandcamp’s editorial arm, Bandcamp Daily, were among those let go. These layoffs were anticipated following Epic’s announcement that not all employees would receive offers from Songtradr.
Epic clarified that the layoffs were not new, asserting that affected employees would receive severance from the company. From Songtradr’s perspective, these adjustments were necessary to ensure Bandcamp’s financial sustainability. The company had previously confirmed on October 5 that layoffs would be implemented.
Bandcamp United, the workers’ union, had requested that Songtradr offer employment to all current Bandcamp staff and voluntary severance as part of the sale. However, at present, Songtradr has yet to recognize the union.
Responding to the concerns of Bandcamp users, Songtradr expressed its commitment to maintaining Bandcamp’s artist-first revenue share, Bandcamp Fridays, and Bandcamp Daily. In a statement provided to Vulture, the company acknowledged the growing operating costs of Bandcamp and emphasized the need for adjustments to ensure the platform’s viability.
Despite the transition, Songtradr aims to preserve the services that artists and fans love. The licensing company plans to offer Bandcamp artists the option to license their music for diverse media purposes, including content creators, game and app developers, and brands.
Meanwhile, Epic is investing in Songtradr as part of the sale and intends to collaborate with the licensing company to incorporate Bandcamp music into its games.
CEO Tim Sweeney, in a letter to employees, confessed that Epic had been spending more money than it earned and attributed the layoffs to the company’s investment in Fortnite’s growth as a metaverse-inspired ecosystem for creators. Sweeney revealed that he had originally hoped to navigate this transition without layoffs but acknowledged the impracticality of that approach in hindsight.
As the Bandcamp community grapples with these changes, the hope remains that the platform’s dedication to independent artists and its artist-friendly practices will endure.