Music subscription service Rhapsody announced a strategic investment in Dubset, a startup that helps DJs to monetize their mixes. The investment was part of Dubset’s Series B funding round. The companies didn’t disclose the amount of Rhapsody’s investment or the overall funding amount, but said that both will have “more exciting news to share” in the near future.
This could mean that Dubset mixes are coming to Rhapsody, which would be part of a bigger trend towards exclusive content for music subscription services. Companies like Rhapsody have long struggled to set themselves apart from market leader Spotify, which is rumored to surpass 10 million paying subscribers later this year.
All of the services have virtually the same music catalog, and features alone haven’t proven to be a big-enough differentiator. Rhapsody competitor Rdio has been struggling with the same issue, and Rdio investor Cumulus recently disclosed that it wants to bring exclusive radio and spoken word content to the service. Depending on the popularity of the content, these kinds of deals could help services like Rhapsody and Rdio to capture users that haven’t been served well by the existing music services.