While Spotify has been reportedly valued at $8.5 billion, its founder and chief executive says the company could have ‘died’ a few years ago. Speaking during a talk at the Slush technology conference in Helsinki on Wednesday, Daniel Ek said the company didn’t realize the significance of mobile early on.
Before 2013, Spotify only had a mobile product that required people to pay a subscription for. On desktop, the music streaming service had a freemium model – with both a free and premium tier. In the short term, Spotify benefited with people paying for the mobile product, but it was missing out on further growth.
Back when the music industry was being ravaged by piracy and the slow demise of the compact disc, Kjarten Slette and Thomas Walle wrote business-school papers about turning things around. After graduation the two got a chance to test their theories as top executives at a Norwegian streaming music service that made its debut in 2010, not long after Spotify appeared in neighbouring Sweden.
You may have heard of their startup, Tidal, even though it hasn’t flourished.The also-ran streaming service achieved pop-star status after Jay Z purchased the company for US$56 million in 2015 and vowed to use it as a vehicle to revolutionize the music business. But the rapper-turned-mogul didn’t deliver on his grandiose vision.
Despite exclusive steaming releases of big albums, including his wife Beyoncé’s “Lemonade,” Jay Z’s Tidal had amassed only 4.2 million subscribers by May 2016, the most recently available figure. Spotify claims more than 100 million active users, 40 million of whom pay to use its service. Apple Music, a distant No. 2 among streaming services, had 17 million subscribers as of September.
Source: Financial Post
Throughout the year, Spotify has seemingly focused its vast resources on several areas: playlists, acquisitions, and original content. The latter of the three has only been a topic of discussion from time to time with the Swedish streaming service, as videos and recordings made specifically for Spotify have seemed to pop up here and there, only making a small splash upon arrival. T
he company looks like it wants to change that with a new weekly series of completely original content.
Today, FORBES can exclusively announce that Spotify is launching two new programs that will bring original musical recordings to listeners around the world: Singles and Live.
Music app maker Smule doesn’t want to be counted out of the battle of mobile live-streaming services. Facebook, Twitter and Musical.ly — and likely soon YouTube and Snapchat — are among major mobile app brands that want people to broadcast video from their smartphones. Live video can attract a widespread and focused viewership, something that video advertisers covet but isn’t yet easy to find on social networks.
Smule, which develops popular apps such as Magic Piano and Sing! Karaoke to make and share music videos, declined to go into details about potential live-streaming features. But during a recent vist to Los Angeles, Chief Executive Jeff Smith said going live is more than a fad.
Source: LA Times
Spotify has kicked off its largest ever global campaign with a major, data-driven outdoor push in which it bids goodbye to 2016 with the sign-off, “Thanks 2016, it’s been weird.”
The campaign begins rolling out in the U.S., the U.K., France and Denmark today (Nov. 28) and then to a further 10 markets (Argentina, Australia, Brazil, Canada, Germany, Indonesia, Mexico, New Zealand, the Philippines and Sweden.) It was developed in-house by Spotify’s internal creative team in New York, supported by insight from its regional teams around the world.
Source: Creativity Online
Spotify is looking to make people better, as well as more entertained.The company has launched a new partnership with Headspace, an app meant to help people live “healthier and happier lives”. In the new deal, people will be able to suscribe to both of the services for a reduced price.
Together, the two apps will sell for £14.99 — or roughly the same price in other currencies — rather than the £10 or so that each of them costs.
Source: The Independent
40 million tracks. It’s a massive, incomprehensible number of songs but that’s the figure music-streaming sites have used in recent times to legitimise their services. Hit the 40 million mark and this somehow proves to potential music listeners that because they have such an unequivocal amount of music on offer they are the ultimate service.
The problem is: if you are given too much choice, no matter how big of a music fan you are, it’s likely you’ll retreat back into your nostalgia cave and put on a record that you are familiar with.