|Spotify has been at the forefront of the streaming service industry since music shifted to allow for easier online consumption / Photo by: PXfuel|
Spotify has been at the forefront of the streaming service industry since music shifted to allow for easier online consumption. But over the years, how has the company been faring? How many people have turned to streaming and what has Spotify been gaining because of it?
King of On-Demand Streaming Music
According to writer Josh Levenson of Digital Trends, a technology news, lifestyle, and information website, Spotify is still a little more superior than Apple Music in terms of what they offer in the current streaming market and in the number of paying subscribers. Levenson said that Spotify was the first to “set the blueprint of the current streaming market and has tens of millions more paying subscribers than the competition.”
Additionally, Spotify offers exclusive content to subscribers, boasting an impressive 40 million-strong song catalog and uploading about 20,000 songs each day. That’s a very big catalog, and frankly, something that is enticing for those of us who have wanderlust when it comes to music and prefer marvelous and rich music experiences.
The Swedish-owned platform began in 2006 but wasn’t launched to immediate success upon its release in 2008. But, 10 years later, Spotify has already amassed a market cap of $26.5 billion on the first day of trading when they went public.
These days, according to Business of Apps, a website providing world-class news, analysis, data, and marketplaces for app businesses, Spotify already has 100 million Spotify Premium subscribers and has a 36% share in the streaming market.
Each user on the platform listens to at least 41 unique artists per week, and the average number of hours people spend on the platform per month is usually 25 hours. Of the premium subscribers, 44% listen to Spotify on a daily basis and often search and stream Drake, WizKid, and Kyla’s “One Dance,” and some Ed Sheeran.
Because of the sheer number of its subscribers, Spotify has already collected about €1.51 billion (US$1.68 billion) in revenue in the first quarter of 2019, with the larger quantity, €1.39 billion (US$1.55 billion), coming from Spotify Premium subscribers.
According to data from the Business of Apps, it’s likely that only more and more users are going to hop onto the platform, especially since every year, Spotify records a 44-million increase in users (25%), and a 25-million increase in subscribers (32%).
Spotify also expects monthly users to reach the 222 million to 228 million count while premium subscribers are expected to reach a whopping 107 million to 110 million in the second quarter of 2019. Accommodating all these users also means that Spotify goes through great lengths to give them good service. According to Appinventiv, a mobile application development company, Spotify has also been developing applications that consistently make their app easy to use and more accessible.
Spotify has applications on both Android and iOS platforms, and they also have them on Apple macOS computers as well as Microsoft Windows. They also have “Spotify Connect” for listeners who want to “listen to music from a wider range of entertainment systems.”
Right now, the fastest-growing market of Spotify is Latin America while the biggest consumers are from Europe. Thirty-six percent of users on the platform are from Europe, 29% are from North America, 22% are from Latin America, and the rest of the world has 13%. With only a little difference, Europe also has the biggest percentage of subscribers, sitting at 40%. North America has 30%, Latin America has 20%, and the rest of the world has 10%.
For any good business to thrive, there must always be reinvention. This means that competition, while not always the best experience to have in business, is actually quite important in that they can serve as catalysts for brands to always want to offer something new to users.
Right now, there are other streaming platforms in the game that just want to dethrone Spotify from its spot. There’s YouTube, which has taken to different streaming offers, Amazon Prime Music, Apple Music, Pandora, SoundCloud (where budding talent almost always comes from), and Google Play Music.
Tidal, which is owned by rapper, songwriter, producer, and entrepreneur Jay-Z, is a streaming service that offers high fidelity sound and is also playing catchup, although it’s taking quite a while.
If offering something new to users is the name of the game, Spotify seems to be doing quite a good job at that as well, as Digital Trends commends the company’s impressive algorithm, letting their users listen to new music every Monday morning. In addition to new music, Spotify also combines some of their exclusive content, reserved usually for premium subscribers, into the mix. They offer not only new tracks but also “deep cuts from some of your favorite artists, thus broadening your listening repertoire with a collection of songs that are right up your alley.”
Indeed, Spotify will not be the Netflix of streaming music service for nothing.
|Right now, there are other streaming platforms in the game that just want to dethrone Spotify from its spot like SoundCloud / Photo by: juannomore via Wikimedia Commons|