Spotify jumps into the hot live audio trend with acquisition of Clubhouse rival Betty Labs

Spotify jumps into the hot live audio trend with acquisition of Clubhouse rival Betty Labs

People walk by the New York Stock Exchange (NYSE) on the morning that the music streaming service Spotify begins trading shares at the NYSE on April 3, 2018 in New York City.

Spotify is moving into live audio.

The company said Tuesday it will buy Betty Labs, the makers of live audio social app Locker Room that's focused on sports. The terms of the deal were not announced.

Shares of Spotify dipped around 0.5% in the morning.

In the coming months, the company said it plans to expand Locker Room into an "enhanced live audio experience" for more of its creators and fans.

Spotify is betting on the future of live, social audio with its acquisition of the Lightspeed Ventures and GV-backed company.

The focus on social audio features rose to prominence last year with the launch of Clubhouse, an invite-only app that's backed by Andreessen Horowitz, which surged in popularity amid the pandemic. Clubhouse has been downloaded 12.7 million times as of March 14, according to mobile data and analytics firm App Annie.

Users flocked to the app to gather in virtual rooms to discuss anything from bitcoin to wellness, looking to recreate in-person conversations.

Now, social media companies are entering the live audio space in an