Back in August, Billboard.biz suggested that online handmade goods marketplace Etsy should expand its music section and encourage collaborations between recording and visual artists.

Well, today Etsy announced a new partnership with Chaz Budnick, better known as indie musician Toro Y Moi. In advance of the release of the new Toro Y Moi album, out February 22, Etsy will sell limited-edition, hand-screened tote bags designed by Bundick and packaged with digital download cards of the new album. The collaboration will be available exclusively on Etsy at www.etsy.com/shop/TOROYMOI.

Could this collaboration be the first step towards a much bigger presence in the music space for Etsy? It would make sense -- the site's audience has proven it is willing to spend money on handmade goods, and could be a new home for many DIY artists.

Etsy already sells some music and homemade instruments, along with incidentals like guitar picks, but the site lacks some of the curation that could make it a leader in the space. If the site keeps partnering with artists and offering new monetization schemes, it could provide a viable revenue stream for both the company and musicians.