The Swedish company, Spotify is one of the world’s leading music streaming services with a growing podcast listenership because it offers content from popular podcast creators like Gimlet Media, Parcast, Anchor, and The Joe Rogan Experience. However, Apple Music poses tough competition to the service. So, a new report by The Information claims that Spotify is exploring expansion into virtual and live events to create a new medium to generate revenue and also to set itself apart from Apple Music.
Recently, both music streaming services introduced paid podcast subscriptions to offer exclusive content for paid listeners. But Apple Music launched Spatial audio and HiFi audio on the service which delivers an immersive high-quality music experience. Spotify has yet to launch its HiFi audio. Apple Music also pays artists one cent per stream which is a lot higher than the Swedish music streaming service rate per stream for artists. So, Spotify also wants to explore events business to improve relations with artists.
Spotify is considering entering the events business, using data about consumer interests gleaned from its music-streaming service to host virtual and possibly live concerts, according to people familiar with the situation. The move could help Spotify improve its relations with music artists, which historically have been strained, with musicians complaining that they don’t make much money from the use of their work on the streaming service.
Spotify considers entering virtual and live events business as COVID-19 vaccination drives are carried worldwide
As per the report, the Swedish company is not looking to compete with major event organizers like LiveNation and Anschutz Entertainment Group. Instead, its plans to use music streaming data to help artists plan concerts in remote and scarcely populated areas and the company will sell tickets to generate revenue. This is new business model will set it apart from Apple Music.
The music-streaming service thinks there is an opportunity to use data about listening habits to help music artists plan concerts in less populated areas, markets that are too small for big headline performers and big companies. That approach would help Spotify demonstrate to artists how it can help their careers. And by offering tickets to its own events, Spotify can help differentiate its streaming service from that of its big rival, Apple Music.
Spotify would sell tickets for the events, giving it a new source of revenue. If the business took off longer term, the move could help Spotify diversify its revenue beyond what it has to currently share with the music labels, following its nearly billion-dollar expansion into podcasting.
The service has been introducing new features on the platform, especially to offer a more personalized listening experience with newly launched features like ‘Only-You‘, improved ‘Library‘, new mixes, and more.