There are few games that have generated as much hype as 2017’s “Fortnite.” The company behind Fortnite, Epic Games, has seen its popularity and value skyrocket since the video game’s release.
From endless merchandise to sponsorship deals with famous athletes and celebrities, Epic Games has stumbled upon immense wealth.
Epic games was valued at $28.7 billion in 2021 and CEO and co-founder Tim Sweeney’s net worth was $7.4 billion, according to a Forbes Sweeney profile updated.
What could possibly be next for the popular company? What can Epic Games do to keep the momentum going? The answer: go into the music industry.
On March 2, Epic Games acquired the streaming platform and merchandise store Bandcamp for an undisclosed amount of money, according to a March 2 New York Times article.
Founded in 2008, Bandcamp is a streaming platform and store headquartered in Oakland, rivaling Spotify and Apple Music. The platform serves as an alternative for hosting less popular musicians because it allows artists to keep most music and merchandise revenue.
When a fan pays for a song or buys an item from the store, 82% of the revenue goes to the artist. Over the span of 13 years, customers have spent a total of $899 million through Bandcamp, according to the Bandcamp website.
Only 2% of artists made more than $1,000 a year on Spotify, according to Feb. 5, The Hustle article.
Spotify pays $3.48 dollars per 1,000 streams, according to the same article.
The possibilities for Epic Games to use Bandcamp are endless. Fortnite can get exclusive music and merchandise through the platform or host a concert within the video game. It hosted a virtual concert in 2020 with American rapper Travis Scott and American music producer Marshmello.
These events were huge hits because they attracted both the fanbase of Fortnite users and fans of the artist.
While the acquisition may seem like a win-win for both sides, some are skeptical about the deal. Many are concerned about the wellbeing of artists, especially since Bandcamp is mainly used by smaller musicians.
With a big company like Epic Games owning Bandcamp, Sweeney might get greedy and slash how much an artist can make, which might make it another Spotify.
One way artists can protect themselves is to unionize. On March 15, 2021, the Union of Musicians and Allied Workers (UMAW) helped artists at Spotify by creating a union. Artists at Bandcamp should follow this example to help ensure the majority of revenue sales don’t go to Epic Games.
Sweeney doesn’t know music. He’s a video game guy and could use whatever revenue Bandcamp makes for his video game projects, effectively sucking Bandcamp dry for its cash. Larger companies have absorbed smaller companies in the past just to close down those businesses a few months later.
Epic Games buying Bandcamp was a huge power move for Sweeney. He has just opened the floodgates for other game developers to dabble in new business opportunities including music –only time will tell if this was a smart move by Epic Games
