Yes, Spotify is about to turn 10. The streaming service may have launched eight years ago in 2008, but the company was incorporated in 2006, taking two years to strike its first full set of licensing deals.
Its progress since then is marked by a series of figures: 100 million active users; 30 million subscribers; launches in 58 countries; more than $3bn of payouts to music rightsholders; more than $1.5bn of equity funding and another $1bn of debt financing; and one right royal dust-up with Taylor Swift.
So what next? As Spotify prepares to enter its second decade, we take a look at the company’s big opportunities – and the challenges that could stop it reaching 20.
Source: Music Ally
The “Seattle Sound” may be a mythical, all-encompassing thing that veers toward indie rock or leftover grunge hits, but according to an analysis by Spotify, the city’s musical taste is quite varied from neighborhood to neighborhood.Streaming data reveals distinctive listening habits in eight parts of Seattle, plus Bellevue.
The music service shared top-10 lists from neighborhoods such as Ballard, Capitol Hill and West Seattle.
Spotify’s latest ad features an unlikely Belieber — a weather-beaten fisherman who’s grooving to Justin on his headphones, even though he appears to be alone in the middle of the ocean. The spot humorously reminds us that Bieber is gaining 75,000 new fans every day — not including those who listen in private mode.
Source: Creativity Online
Spotify wants music streaming behavior to become a new currency for advertisers, and the company is working with data management platform Krux to make that happen.
Over the past several months the two firms have developed and tested a new offering that puts Spotify data to use for advertisers including Esurance and Lay’s potato chips, specifically in the Spotify mobile app.
Spotify has first-party age and gender data on its users, and knows not only what music genres they prefer, but when they tend to listen.
A music-streaming startup partly owned by Spotify is going after the elevator-music market—and it’s squarely aiming at the company that currently dominates it.
Soundtrack Your Brand, which is about 30% owned by Spotify, introduced itself in the US on May 5 with the announcement of a deal with McDonald’s. It won’t be a big revenue driver, but it gives the Swedish startup its first foothold outside Scandinavia—and sets up a clash with the industry’s current market leader, Mood Media, which is the successor company to the brand that practically invented the idea of ambient music in shops: Muzak.
Spotify launches a lot of things that don’t stick. Said things are often revealed at elaborate, highly produced pitch events where male models serve haute breakfast foods and high-profile musical acts like D’Angelo perform.
Take, for example, the company’s “open API” launch from 2011. Partners like Rolling Stone, Pitchfork, and Billboard built apps inside Spotify. These apps were meant to help Spotify’s users figure out what to listen to and find out about concerts. The apps are now gone. Instead, Spotify has built its own music discovery tools.
Apple Music has existed for less than a year and boasts 13 million paid subscribers, but an exec at chief rival Spotify believes that’s a good thing.
Speaking with Reuters recently, vp of sales Jonathan Forster said it was “great” that Apple has taken an interest in the platform. “They are definitely raising the profile of streaming,” he said. “It is hard to build an industry on your own.”According to Forster, Spotify has been “growing quicker and adding more users than before” the launch of Apple Music on June 30 of last year.
Around that time, Spotify had an estimated 20 million paid subscribers. Now, it has 30 million premium users with close to 100 million streaming via the freemium tier.