Splice Acquires Spitfire Audio: The Essential Details

The music technology landscape shifted significantly today as Splice officially completed its acquisition of UK-based virtual instrument developer Spitfire Audio. The deal, valued at approximately $50 million according to multiple reports, brings together two influential forces in music production technology.

Announced earlier this year, the acquisition has now been finalized, with both companies sharing details about their integration plans and addressing user concerns through comprehensive FAQs.

The Strategic Partnership

Splice, valued at nearly $500 million after securing $55 million in funding in 2021, generates more than $100 million in annual revenue with approximately 600,000 paying subscribers. The platform is known for its vast library of royalty-free samples, with users downloading nearly 350 million sound samples across all genres last year.

Spitfire Audio, established in 2007, has built a reputation for high-quality orchestral and cinematic virtual instruments, collaborating with renowned artists and institutions including Hans Zimmer, Ólafur Arnalds, the BBC Symphony Orchestra, and Abbey Road Studios.

The acquisition marks Splice’s strategic entry into the high-end virtual instrument market, valued at $640 million, positioning the company to capitalize on the wider music creation market that’s projected to nearly double to $14 billion by 2031.

What This Means for Users

Both companies have published extensive FAQs to address user concerns. Key points include:

• Spitfire Audio will maintain its brand identity and continue operating under its own name
• No immediate changes to pricing models for either platform
• Perpetual licenses for Spitfire products will remain unchanged
• Both platforms will continue updating existing products and libraries
• Login credentials will remain separate for now
• LABS and LABS+ will continue as before, with free packs remaining accessible to all

Splice CEO Kakul Srivastava and Spitfire co-founder Paul Thomson have emphasized that the partnership aims to create new products that combine Splice’s AI-powered discovery engine with Spitfire’s world-class sound technology.

The AI Connection

A significant aspect of this acquisition is the role of AI in future product development. Splice has been developing AI-powered tools like Splice Create, which allows users to build sound stacks based on genre, mood, or vocal performances.

Approximately 40% of Splice users have already embraced the platform’s AI tools. Srivastava has emphasized that their approach to AI differs from “simplistic AI tools where you type in a prompt and a song comes out,” focusing instead on enabling musicians to do things they couldn’t do before, such as merging instruments to create novel sounds.

Thomson acknowledged concerns around AI in the music creation community but framed it as simply another tool: “As musicians and composers, we’ve always used technology. We’ve always adopted new plug-ins, or new ways of doing things… It’s just a tool to help you be more creative.”

Leadership Structure

The organizational structure will see Olivier Robert-Murphy remaining as CEO of Spitfire Audio, reporting directly to Srivastava. Thomson will continue to oversee Spitfire Audio’s creative direction, stating, “I’m not going anywhere. I’m really excited about the future and about what we’re going to be able to build together.”

Looking Ahead

In the coming months, users can expect to see initial integration efforts between the two platforms. Srivastava has indicated that “really cool new stuff” will be rolling out over the next six to nine months, potentially including ways to bring Spitfire’s virtual instruments to the Splice platform.

The partnership aims to create what they describe as “the most complete and forward-thinking toolkit for modern music makers,” serving everyone from bedroom producers to professional composers with an expanded creative palette that spans from drum loops to orchestral arrangements.

For the immediate future, both companies have assured users that their existing workflows and products will remain unchanged, with the promise of new collaborative products on the horizon that will leverage the strengths of both platforms.

If you are not familiar with Splice yet, make sure to check out our Splice review!