Epic Games acquires Bandcamp in its latest move to expand
North Carolina-based company, Epic Games, acquires Bandcamp this week with future aims to expand into creator market share. Epic is well known for its development of Fortnite and Unreal Engine, but for now, this merger means business as usual for the independent artist platform, Bandcamp. Ever-focused on its artist-prioritized business model, Bandcamp promises the same returns as always for independent music makers on the platform.
Bandcamp CEO, Ethan Diamond said in a statement that they will be “working with Epic to expand internationally and push development forward across Bandcamp, from basics like our album pages, mobile apps, merch tools, payment system, and search and discovery features, to newer initiatives like our vinyl pressing and live streaming services.”
Epic Games acquires Bandcamp, but what led up to it?
With both companies developing initiatives for artists over the pandemic era, it would seem that interests are aligned. Bandcamp, with its many revue wavers and the Covid-19 day initiative which raised $4.3 million from fans in the support of artists. While Epic Games launched several Fortnite collaborations with artists such as Travis Scott, Tash Sultana, and Tones and I.
Epic Games Vice President, Steve Allison said that they “couldn’t be more excited to welcome the Bandcamp team to Epic Games. Bandcamp has built an incredible community and business where up-and-coming artists can succeed thanks to the direct support of their fans, with one of the best revenue models and terms in music. This aligns closely with Epic’s approach to supporting creators across all media and enabling them to connect directly with their fans.”
Since 2020, Sony has invested over $450 million in Epic Games bringing its equity valuation to $28.7 billion in June of last year. How much this stake in the company will affect future developments remains to be seen, but it will surely benefit Sony in the short-term to have such a close with a games developer of this size.
More about Bandcamp and Epic Games:
Tencent are also part owners of Epic. This does not bode well for the future of Bandcamp.