Hangout revives the past of a lost classic music stream

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

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

“With our extensive global partnerships between music companies, Hangout is embarking on its journey to redefine the intersection of music and social media,” Founder/CEO Joseph Perla he 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 towards that goal.”

The idea is simple: People set up listening rooms and play music for visitors. The DJs are represented by avatars on stage, standing on the edge of the turntables and moving to the beat of the music, while the avatars of the listeners are facing the stage, with only the backs of their heads visible. The platform has two business models: Like Spotify and YouTube, Hangout will offer premium subscriptions that eliminate ads, while an avatar store will be another source of revenue, the company says Bulletin board.

If Hangout looks familiar, that's because the concept, look, and feel are borrowed from Turntable.fm, a site that captivated listeners with its cartoony and collaborative approach to streaming music. Perla co-founded Turntable.fm and later worked at Facebook and Lyft in the past reviving the idea and capital raising from companies like Founders Fund (an early investor in Spotify), Elizabeth Street Ventures and 468 Capital.

Turntable.fm exploded onto computers in 2011 and quickly gained a following. YouTube and the newly launched Spotify had more funding and secured licenses with record labels, but were not as attractive to users as Turntable.fm. Imitators soon appeared, showing that entrepreneurs recognized that people wanted more options for streaming music.

However, the early 10s were a different time. Good ideas abounded, 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 running into licensing issues, being forced to block non-US users and eliminating the ability for users to upload unlicensed tracks. Now, almost any track people want to hear is readily available, and Hangout faces a friendlier licensing climate.

“We are pleased to support the continued development of opportunities for fans to experience and hear Sony Music artists in shared social spaces that fairly value their work.” Mark Piibeexecutive vice president of global business development and digital strategy at Sony Music, said in a statement. “We are pleased to support the continued growth of opportunities for fans to experience and hear Sony Music artists in shared social spaces that value their work enough.”

“Social listening continues to be a key component of the fan experience, increasing engagement and conversation among dedicated communities of artists, and Hangout will help enhance these fan experiences in a unique and engaging way,” he added. Kristen Bendersenior vice president of strategic digital innovation and business development at Universal Music Group;

“We are thrilled to partner with Hangout to bring our diverse roster of artists to this innovative music platform,” he said Rachel Scarpatibusiness strategy and business development representative at Warner Music Group. “This partnership underscores WMG's commitment to breaking new ground in music discovery, strengthening community and providing powerful ways for fans to engage and share their love of music.”

And in Merlin, Ryan McWhinneyvice president of operations and legal affairs, said, “Community is at the heart of independent music. This partnership with Hangout brings new opportunities for our global members and their artists to connect with fans and grow their communities.”