Social Listening App Raises $3 Million in Series A Funding

The Genesis of Earbuds: From the NFL to Social Music Sharing

The story of Earbuds doesn't follow the typical startup trajectory; its inception occurred on an NFL field. Founder and CEO Jason Fox, while serving as an offensive tackle, first conceived the idea for the platform. Observing Cam Newton, the first overall draft pick, listening to music during warm-ups in 2011, Fox wondered about the athlete’s musical selections and speculated that the 85,000 spectators shared the same curiosity.

$3 Million Series A Funding Secured

A decade later, Earbuds has successfully secured $3 million in Series A funding. This investment round was spearheaded by Ecliptic Capital, with further contributions from the Andre Agassi Foundation and LFG Ventures.

A Platform for Shared Musical Experiences

Launched in 2019, Earbuds facilitates the sharing of favorite playlists among users. It allows for livestreaming of music, akin to a DJ set, and enables commentary on others’ musical choices. The app boasts a diverse user base, including prominent figures like artist Nelly and NFL quarterbacks Baker Mayfield and Patrick Mahomes – both of whom are also investors.

Expansion Plans and Key Hires

The newly acquired funding will be utilized to expand the app’s functionality. The team, currently comprised of six members, intends to introduce creator monetization tools to incentivize platform usage. Furthermore, Earbuds has welcomed David Ransom and Sean Moubry, former product and engineering leaders from Apple, as Head of Product and Head of Engineering, respectively.

Tech industry veteran Drew Larner has also joined as a senior advisor and investor. He previously sold the streaming application Rdio to Pandora in 2015, which was subsequently acquired by Sirius XM for $3.5 billion in 2018.

Integration with Major Streaming Services

Currently, Earbuds requires users to possess a paid subscription to either Spotify or Apple Music. However, the platform is actively working to integrate with the paid tiers of Amazon Music and Pandora in the near future. These integrations enable the app, available on both iOS and Android, to source music for streaming.

Regardless of the listener’s preferred platform, they can still enjoy the social features of Earbuds, including live playlist listening and real-time commentary.

User Features and Playlist Sharing

Upon connecting an account, users can effortlessly import their existing playlists. The app also allows for the addition of voice clips to provide commentary on song selections. While listening to a stream, users have the option to save the playlist to their streaming service or share it via an Instagram story.

User Acquisition and Market Potential

While Jason Fox has not disclosed specific monthly active user numbers, he is confident in the app’s ability to attract users from existing streaming platforms. Spotify currently has 165 million paid subscribers, Apple Music boasts at least 60 million, and Amazon Music has at least 55 million.

“Our goal is to integrate with as many streaming partners as possible, ensuring accessibility for all users, irrespective of their chosen platform,” Fox stated.

Targeting Athletes and the Creator Economy

Although Fox aims to attract a broader range of musical artists, the company’s initial marketing efforts have focused on athletes and sports enthusiasts. A particularly promising market lies within NCAA athletes, who are newly permitted to monetize their name, image, and likeness.

“Imagine a quarterback preparing for a crucial rivalry game, wanting to engage and monetize fans while listening to music and building excitement before the game,” Fox explained.

Monetization Strategies and Revenue Streams

Currently, Earbuds does not offer in-app purchases, as the monetization tools are still under development. This addition will provide a new revenue stream for the app, which is not yet profitable. To date, Earbuds has generated revenue through sponsored posts from partners such as the NBA, NFL playoffs, smart speaker companies, and beverage brands.

“We will continue to pursue sponsored content, but we anticipate that the majority of our future growth and revenue will stem from partnerships, integrations, and supporting the creator economy,” Fox said. Earbuds currently has a partnership with Apple Music, receiving a portion of subscription payments made through the app.

The Rise of Social Listening Apps

With the continued growth of streaming services like Spotify, social listening applications like Earbuds are gaining prominence. Spotify itself has begun to incorporate more social listening features, including a Music + Talk platform that mirrors some of Earbuds’ existing capabilities.