Hangout Revives a Lost Classic of Music Streaming’s Past

Streaming music isn’t much of a social experience, but Hangout, a new music service that debuted Wednesday (Nov. 13), wants to change that. 

Calling itself a “social platform,” Hangout, which is available on the web, iOS and Android, launched globally with more than 100 million songs available to stream thanks to licensing deals with the three major labels — Universal Music Group, Sony Music Entertainment and Warner Music Group — and indie rights group Merlin. 

“With our broad global partnerships across the music companies in place, Hangout begins its journey to redefine the intersection of music and social media,” founder/CEO Joseph Perla said in a statement. “Our vision has always been to create a platform that celebrates the joy of music but also helps support the music industry. Today marks a monumental step toward that goal.”

The idea is simple: People set up listening rooms and play music for guests. The DJs are represented by avatars on stage, standing aside turntables and moving to the rhythm of the music, while listeners’ avatars face the stage, only the back of their bobbing heads visible. The platform has two business models: Like Spotify and YouTube, Hangout will offer premium subscriptions that eliminate advertisements, while an avatar store will be another source of revenue, the company tells Billboard. 

If Hangout looks familiar, that’s because the concept, look and feel is borrowed from Turntable.fm, a website that charmed listeners with its cartoonish and communal approach to streaming music. Perla was a co-founder of Turntable.fm and later worked at Facebook and Lyft before reviving the idea and raising capital from the likes of Founders Fund (an early investor in Spotify), Elizabeth Street Ventures and 468 Capital. 

Turntable.fm exploded onto computers in 2011 and quickly attracted a following. YouTube and the just-launched Spotify had more financing backing and secured licenses with record labels, but they weren’t as engaging for users as Turntable.fm. Imitators soon appeared, showing that entrepreneurs recognized that people wanted more options to stream music. 

The early ‘10s was a different era, though. Good ideas were plentiful but countless startups either failed to build momentum or secure the necessary licenses to reach a large audience. Turntable.fm shut down in December 2013 after it ran into licensing problems, was forced to exclude users from outside the U.S. and nixed the ability for users to upload unlicensed tracks. Now, nearly any track people want to hear is readily available, and Hangout faces a friendlier licensing climate. 

“We’re pleased to support the continued growth of opportunities for fans to experience and listen to Sony Music artists in shared social spaces that fairly value their work,” Mark Piibe, executive vp of global business development & digital strategy at Sony Music, said in a statement. “We’re pleased to support the continued growth of opportunities for fans to experience and listen to Sony Music artists in shared social spaces that fairly value their work.”

“Social listening continues to become a key component of the fan experience, driving loyalty and conversation amongst engaged artist communities and Hangout will help power these fan experiences in a unique and compelling way,” added Kristen Bender, senior vp of digital innovation strategy & business development at Universal Music Group.

“We’re thrilled to partner with Hangout to bring our diverse catalog of artists to this innovative music platform,” said Rachel Scarpati, vp of business strategy & business development at Warner Music Group. “This partnership underscores WMG’s commitment to pioneering new avenues for music discovery, fostering community, and providing fans with dynamic ways to engage and share their love for music.”

And at Merlin, Ryan McWhinnie, vp of business & legal affairs, said, “Community is at the center of independent music. This partnership with Hangout brings new opportunities for our global membership and their artists to connect with fans and broaden their communities.”