Since Spotify debuts in the markets with an atypical IPO, the truth is that we have all speculated to a…
Since Spotify debuts in the markets with an atypical IPO, the truth is that we have all speculated to a greater or lesser extent with the changes that would lead Spotify to green numbers for the first time since his birth.
Some talked about hardware as a good source of income, and you already hear siren songs that refer to the first smart speaker with the signature of Spotify . Others talked about become the Netflix of the music industry creating our own content, although we have known little about this. What is clear is that new horizons open and must open Now that Spotify must be accountable to its shareholders.
Nobody escapes that Spotify is a giant with more than 157 million users worldwide, but neither is it a lie that has never registered benefits and that the record companies control their movements more than Daniel Ek would like. New business routes seem insurmountable, and the first movement seems to be restructure your service streaming free music , or at least they told us from Bloomberg this afternoon.
Spotify would be developing already a new version of your service ‘Freemium’ , the free , which in a logical order would be the first major product of the company to undergo modifications after its premiere on the New York Stock Exchange including revaluation.
There are not too many details, but according to close sources it is stated that Spotify will look for a service that is easier to use and better adapted to customers who use smartphones , the majority today, with a road map not closed that would be presented in a couple of weeks officially.
The truth is that the service of streaming Most popular music needs to attract new users, and that is the free service adds clients later in the payment modalities that offer us to expand our possibilities in exchange for a monthly fee that has always seemed reasonable.
Users who do not pay represent more than half of the total base, although they do 90 percent of Spotify’s revenue comes from the customer base premium , so there is no doubt that Spotify needs new sources of revenue or improve the ratio of “paid” customers.
We will have to wait to see what the Nordics are inventing, seeking to please their users and get them to pay , which incidentally will please its shareholders and will revalue the company even more.
So far, it has transpired that the updated service will allow users ‘Freemium’ access lists more quickly of reproduction, as well as having more control over the songs that you hear in those main playlists. Recurring requests but that Spotify always redirected to the payment models of the service.
The growth forecasts handled by Daniel Ek and his board of directors point to the 200 million total users at the end of this same year 2018, although for this they will have to compete with Apple, Google and the giant of the Amazon trade, among others.
It does not seem like an easy goal because there is no infinite growth, and besides Spotify has the musicians and the industry quite angry for what they believe is a way to give away their music for free.
This is not entirely true, and that is Spotify pays high sums to record labels , who are now asking the European company to limit what is available to users ‘Freemium’ . Well it is to point this data, and that is Sony BMG, Universal, Warner and EMI control around 16% of Spotify , and have more than 75% of their music library.
The last war has been fought in the form of launch dates, and that is that the main producers They got Spotify to delay the publication of new albums during a period that allows them to make better profits, although the Nordic firm has always refused to make major changes to its free service, alluding to the fact that it has to compete with YouTube.
We will see the next movements of Spotify, which has already invited the press to an event on April 24, of which we do not know much. Many say that this new free service will be released on that date, others indicate that it is the presentation of a ‘speaker’, and some allude to the hiring of hardware specialists to say that the aforementioned intelligent speaker will be presented … be attentive!
In Andro4all | This will change Spotify after its IPO, and this will affect you as a user
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