Artist-Friendly Music Site Bandcamp Acquired by “Fortnite” Creator Epic Games

The video game company that is challenging some of the biggest tech companies in the world is buying the music company that wants to challenge the dominant tech business model in this industry.

Epic Games Inc. announced on Wednesday that it is buying Bandcamp, an online music store that allows musicians to create their own storefront and keep more of the proceeds from sales than streaming services such as Spotify Inc. SPOT ,
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It’s an interesting fit, as Epic challenged the dominant business model in its industry by suing Apple Inc. AAPL,
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and Alphabet Inc.’s GOOGL,
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GOOG,
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Google, claiming they are using monopoly power to illegally control the mobile gaming industry.

Read more: Will video games be Apple and Google’s Achilles’ heel in antitrust investigations?

“Fair and open platforms are essential for the future of the creator economy,” an unattributed Epic blog post bed. “Epic and Bandcamp share a mission to create the most artist-friendly platform that allows creators to keep the majority of their hard-earned money.”

Bandcamp, founded in 2008, allows artists to sell digital music as well as physical goods such as records and merchandise, and takes 15% of the total, with artists also responsible for payment processing fees. The Oakland, California-based company says the result is that 82% of all money spent on its site goes directly to the artist, with that total approaching $1 billion over the life of the site, according to a Wednesday blog post from Managing Director Ethan Diamond.

“While over the years we’ve heard from other companies who wanted us to join them, we always thought it would only be exciting if they believed strongly in our mission, were aligned with our values ​​and only wanted not just to see Bandcamp continue, but also wanted to provide the resources to bring much more benefit to the artists, labels and fans who use the site,” Diamond wrote. “Epic ticks all of those boxes.”

Epic Games has remained private despite its huge success with “Fortnite,” a video game focused on an online “Battle Royale” format that has won fans and spawned imitators. The company has, however, welcomed outside investment, including from Chinese tech giant Tencent Holdings Ltd. 700,
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which has its own NYSE-listed music streaming subsidiary, Tencent Music Entertainment Group TME,
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as well as investments in Spotify and music labels including Warner Music Group Corp. WMG,
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Diamond said Bandcamp would continue to operate independently and promised that the core service would not change, specifically highlighting the control and distribution of revenue artists receive as well as Bandcamp Fridays, when the service gives up its share of income on the first Friday of each month. He said the Epic deal will help the company expand internationally and shore up new endeavors like vinyl pressing for artists and its own streaming app.

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