Music streaming service 8tracks has been profitable since 2012, but wants to move faster. For its new round of funding, the company chose to secure a $2.5 million debt financing from Silicon Valley Bank. As a reminder, 8tracks is a library of modern mixtapes, as anyone can create and listen to user-generated playlists based on genres and moods.
The company recently moved into direct licensing deals with music labels in order to build its own song library for its playlist creators. Independent labels and aggregators INgrooves, CD Baby, Dim Mak and DashGo led the way in April, TuneCore, Naxos, Black Hole Recordings and Armand Van Buuren’s Armada Records are now joining the music library, covering a wide range of genres from classical music (Naxos) to trance (Black Hole Recordings).
Playlist creators can pick songs from 9 million different tracks, or upload songs directly from their computers as…
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