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Spotify declares war on the majors

2021-02-23T12:19:22.404Z


The audio streaming giant has announced its new guideline: expand to 80 additional countries, and develop content produced in-house.


Born in Sweden, the audio streaming platform Spotify continues to conquer the world.

"

We're looking to reach over a million new users,

" Alex Norström,

the firm's

freemium

content manager, said Monday

.

How to reach them?

By developing in more than 80 countries, mainly in Africa and Asia.

The group will therefore seek to reach users in Kenya, Côte d'Ivoire and even Rwanda.

A potential pool that would be added to the 345 million users already acquired.

To reach these new audiences, the app must undergo model changes.

This development involves diversifying subscription prices to adapt to local markets.

In France, a subscription costs an average of $ 10.85, but thanks to the Spotify Mini offer, Indian or African users only pay $ 1.58 per month.

The company is also trying to adapt to material differences by offering a "

light

"

version

of its application, optimized for slower telecom networks.

In contrast, Spotify will go upmarket by offering American subscribers to subscribe to a HiFi offer, offering higher quality sound for a higher price.

Challenge the majors

To reduce dependence on the music majors who sell their catalogs very dearly, Spotify wants to bring out many independent artists.

With its “RADAR” project, the Swedish group is already providing 175 up-and-coming artists with numerous recording tools, a story creation tab and will highlight them thanks to its recommendation algorithms and in its play lists.

Without fully playing a label role, Spotify wants to bring out a new generation outside the majors system.

"

We even hope to be able to send them on tour and to festivals as soon as possible

", anticipates Mirian Dicus, in charge of musical development.

Read also: Spotify's insatiable appetite for podcasts

Spotify had already engaged in this showdown with the majors by massively developing Podcasts.

Today, the streaming platform is shifting into high gear.

The company will open up marketing paid podcasts, through its subsidiary Anchor.

A first that breaks with the usual economic model, based solely on advertising.

His arrival is scheduled for "

the coming months

", after a phase of testing in the United States.

According to the first data announced three price offers will be offered: 2.99 dollars, 4.99 dollars and 7.99 dollars.

A system that will be available to all creators of the 2 million podcasts already published.

Behind this series of announcements, Spotify sends a message to its shareholders: it wants to increase its margins.

Because the world number one continues to record strong net losses 2020. And this, despite revenue of 177 million euros from premium subscriptions.

But its profitability has been weighed down for years by the advances (minimum guaranteed) that they must pay to labels.

Source: lefigaro

All life articles on 2021-02-23

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