Little-known US music startup 8tracks successfully balances unique playlists and profitability
California-based music startup 8tracks is providing its users with unique playlists and successfully implements its business model. This is a feat that only a handful of music startups are able to achieve, according to VentureBeat.
The service allows its users to make their own playlists or listen to those already created by other users. 8tracks has a diverse music library that contains both mainstream tracks and those in SoundCloud. Its active users, who listen to 30 million music hours every month, currently number 8 million. According to comScore, 8tracks is even bigger than Rdio, Deezer, and Songza. Today, the company launched an Xbox Live app in a bit to further boost its listening rate among college users, the report detailed.
Another impressive thing about 8tracks is that it managed to become profitable with just $1.5 million in its pocket. In addition, the startup's royalty rate for music is the same as that of industry giant Pandora, the report noted.
Founder and Chief Executive Officer (CEO) David Porter told VentureBeat: "We suffer from mindshare, even though we're twice the size of Rdio. [Also,] we haven't spent any money on marketing, and 8tracks might be a little more difficult to get into for new users until they discover some great mixes."
The San Francisco startup was founded in 2008. As of now, Porter said it is looking to raise a new funding round and release an updated version of its mobile apps soon. The company is also planning do generate revenue through native and non-traditional advertising, VentureBeat reported.