Spotify has scored a major win over competitors, securing an exclusive deal with Joe Rogan.
The Joe Rogan Experience is one of the most popular podcasts on the planet, with millions of listeners per episode. The podcast also attracts a bevy of high-profile guests.
In making the announcement on Instagram, Rogan emphasized that this was just a licensing deal, and that Spotify would have no creative control.
“Starting on September 1 the podcast will be available on Spotify as well as all platforms, and then at the end of the year it will move exclusively to Spotify, including the video version,” wrote Rogan.
“It will remain FREE, and it will be the exact same show. It’s just a licensing deal, so Spotify won’t have any creative control over the show. They want me to just continue doing it the way I’m doing it right now.
“We will still have clips up on YouTube but full versions of the show will only be on Spotify after the end of the year.
“I’m excited to have the support of the largest audio platform in the world and I hope you folks are there when we make the switch!”
Spotify has been trying to branch out and show it’s more than a music service. This deal is a big step in that direction.
In another case of “what were they thinking,” Spotify sent journalists USB drives with a note saying: “Play me.”
The journalists at TechCrunch were brave enough to plug in the drive and open it—after taking the necessary precautions, of course. The drive was plugged into a spare computer running a disposable version of Linux on a live CD.
As it turns out, the drive was harmless, containing a single audio file promoting one of Spotify’s new podcasts. The file simply said: “This is Alex Goldman, and you’ve just been hacked.”
Despite the harmless nature of this drive, security experts have been warning companies and individuals for years of the dangers of plugging random USB drives into computers. These devices can contain executable files, viruses and other malware, making them a popular attack vector for cyber criminals.
For a company of Spotify’s stature to resort to such a tactic in the interest of self-publicity was irresponsible and obtuse, and will no doubt cost the company a great deal of good will with journalists.
Spotify recently introduced Spotify Codes to all of their users. Through this update, Spotify users can now share their music with friends and family by simply scanning an image code. The code will then load the shared track, album, or playlist into the user’s mobile device. This innovation seeks to make music sharing a more seamless and immersive experience for everyone both in real life and on social media.
Most of the tracks, playlists, and albums on Spotify now comes with a code-enhanced image that allows users to share them with anyone with a simple scan. These images can also be saved into a device’s camera roll and uploaded to any social media platform. Images uploaded onto social media can be scanned by anyone for as long as they have the Spotify app.
To make the code work, users must click on the “…” context and look for the newly installed camera button. Selecting this button will prompt the in-app camera to load. Once the camera has loaded, users can take a picture of the scannable image to get the track, playlist or album to load into their phones.
The code itself can be found at the bottom of the artwork of specific albums, tracks, or playlists. Users must take a picture of the code-enhanced image in order to successfully load the content.
The Spotify Code will definitely change the way music fans share their music, making it more interactive and social in nature. Aside from benefiting music lovers everywhere, Spotify Code is also set to transform the way artists share their music. This gives artists an opportunity to engage with their fans on social media on a more experiential level. They also have the freedom to be as creative as they can be when it comes to marketing their music to all their listeners and fans across the globe.
Spotify is also thinking of bringing this music sharing innovation to the real world and embedding the code into flyers and posters. The team behind the latest update says they are confident that this can improve the way everyone consumes and shares music online. “We’re excited to see the creative ways in which they are used,” the music service said.
Spotify users can now enjoy this completely new and innovative way of sharing their favorite tracks with friends and family. Spotify Codes is currently being rolled out globally for both Android and iOS users.
Amazon announced that Spotify Premium subscribers in the U.S. can now listen to music on Amazon Echo, operating it by voice commands.
“Additionally, customers can seamlessly switch between playing music on their phone to playing on Echo with Spotify Connect meaning users can listen to music on their headphones and upon walking in the door have Alexa rock the tunes from the Echo,” an Amazon spokesperson tells WebProNews.
“To activate, users will sign into their existing Spotify account in the Alexa app,” they say. “Users can then ask ‘Alexa, play Blink 182 from Spotify’ or ‘Alexa, play Today’s Top Hits from Spotify.’”
Echo has become a major product for Amazon. It’s even the subject of the company’s first-ever Super Bowl commercial, which it teased last week.
Since launching last summer, the device, which lets you add items to a shopping list, and gives you info, music, news, weather, etc., has apparently sold pretty well.
The company said it was the number one best seller across all $100+ products available on Amazon.com on Black Friday.
In November, Amazon Echo was added to the inventories of 3,000 stores throughout the U.S. including The Home Depot, Staples, Sears, Brookstone, Radioshack, Fred Meyer, P.C. Richard & Son, and others.
Last month, The Wall Street Journal reported that Amazon will soon release a smaller, portable version of Echo. It’s expected to sell for a lower price than the $180 device that exists.
Spotify support will make the device instantly more appealing to a lot of people.
Apple Music has racked up some 10m paying subscribers in its first six months, according to reports.
Apple Music has amassed 10 million subscribers within six months, a landmark which took Spotify six years, it has emerged.
The streaming service, which was launched at Apple’s Worldwide Developers Conference last June, is rapidly closing the gap between its closest rival Spotify, sources told the Financial Times.
Sweden-based Spotify, founded in 2008, had some 20 million paying subscribers as of last June, with 55 million using the platform’s limited free tier. The number of subscribers is now likely to be closer to 25 million, according to the Verge.
With today’s announcement, SpaceIL is the first of the 16 Lunar X Prize teams to book a ride off the planet. If the mission succeeds, it will be the first Israeli mission — as well as the first private spaceflight mission — to soft-land a vehicle on the lunar surface. Eran Privman, CEO of SpaceIL, claimed the group isn’t focused on the competition, but they are confident they can win. “I promise you once we land on the Moon, we’ll look around and see we are the first,” he said.
Only three nations have ever landed a spacecraft intact on the Moon: the United States, Russia, and China. Many countries have slammed lunar orbiters or probes into the Moon to study its environment, but gently landing a spacecraft is trickier. The Moon is big enough to have a gravitational pull, but it doesn’t have an atmosphere to slow incoming objects. Spacecraft in lunar orbit must fire retro-rockets, very precisely, in the opposite direction of the Moon. That way they can slowly descend without slamming into the rock. It’s a delicate procedure that usually requires a lot of time and money, which is why only government agencies have been able to do it up until now.
A trait carried over from their debut, luckily for us listeners
Egyptian chest, and was moreover intensified by his delirium, that his mates were forced to lace him fast, even there, as he sailed, raving in his hammock. In a strait-jacket, he swung to the mad rockings of the gales. And, when running into more sufferable latitudes, the ship, with mild stun’sails spread, floated across the tranquil tropics, and, to all appearances.
SpaceX’s Falcon 9 rocket during launch. (SpaceX)
That it was only then, on the homeward voyage, after the encounter, that the final monomania seized him, seems all but certain from the fact that, at intervals during the passage, he was a raving lunatic; and, though unlimbed of a leg, yet such vital strength yet lurked in his Egyptian chest, and was moreover intensified by his delirium, that his mates were forced to lace him fast, even there, as he sailed, raving in his hammock. In a strait-jacket, he swung to the mad rockings of the gales. And, when running into more sufferable latitudes, the ship, with mild stun’sails spread, floated across the tranquil tropics, and, to all appearances, the old man’s delirium seemed left behind him with the Cape Horn swells.
Human madness is oftentimes a cunning and most feline thing. When you think it fled, it may have but become transfigured into some still subtler form. Ahab’s full lunacy subsided not, but deepeningly contracted; like the unabated Hudson, when that noble Northman flows narrowly, but unfathomably through the Highland gorge.
Lauren Mayberry’s lyrics touches on elements of heartbreak
God the direful madness was now gone; even then, Ahab, in his hidden self, raved on. Human madness is oftentimes a cunning and most feline thing. When you think it fled, it may have but become transfigured into some still subtler form. Ahab’s full lunacy subsided not, but deepeningly contracted; like the unabated Hudson, when that noble Northman flows narrowly, but unfathomably through the Highland gorge.
But, as in his narrow-flowing monomania, not one jot of Ahab’s broad madness had been left behind; so in that broad madness, not one jot of his great natural intellect had perished. That before living agent, now became the living instrument. If such a furious trope may stand, his special lunacy stormed his general sanity, and carried it, and turned all its concentred cannon upon its own mad mark. I knew the Indians would soon discover that they were on the wrong trail and that the search for me would be renewed in the right direction as soon as they located my tracks. I had gone but a short distance further when what seemed to be an excellent trail opened up around the face of a high cliff. The trail was level and quite broad and led upward and in the general direction I wished to go. The cliff arose for several hundred feet on my right, and on my left was an equal and nearly perpendicular drop to the bottom of a rocky ravine.
Since the dawn of the status update, Facebook users have been posting about what music they’re listening to. A lot of the time, users post links to YouTube videos. For a while, Spotify shares have gone in and then out of favor. Nobody really liked linking their entire Spotify activity to Facebook. That was just overkill.
Now, Facebook has thought up a new way for users to share music. The company is now rolling out what it calls “Music Stories” on its iOS app.
Music Stories are basically 30-second clips from songs shared via Spotify, Apple Music, and iTunes. When users share a song on their Facebook feed from Spotify, for example, Facebook converts that track to a Music Story and allows users to listen to a 30-second clip.
The music is contained inside Facebook’s wall – meaning you don’t have to be a member of Spotify or Apple Music to hear the samples.
On the Facebook iPhone app, songs and albums shared from the leading music services will become “Music Stories,” a new post format which allows people to listen to a 30-second preview of the shared song (or album) while on Facebook. The preview is streamed from either Apple Music or Spotify (depending on the source of the link shared), and can be purchased from or saved to the respective music streaming service.
The previews from Apple Music and iTunes are available directly through Facebook. If you want more, click through to stream full tracks on Apple Music or add music to your library with a single click to purchase through the iTunes store. The previews from Spotify are also available directly through Facebook. If you want more, click through to stream full tracks on Spotify or add to your library without leaving Facebook.
According to the company, Music Stories will expand support for other streaming platforms in the near future.
So, long story short, expect a lot more music to pop up in your news feed.
Ed Sheeran just broke a pretty huge Spotify record.
One of the artist’s songs (I bet you can guess which one) is the first to ever hit 500 million streams.
Yes, “Thinking Out Loud” has been played more than a half a billion times on Spotify. That’s a lot of Sheeran.
“Chuffed to hear that ‘Thinking Out Loud’ has had half a billion plays on Spotify,” said Ed Sheeran. “Being the first artist to hit that milestone is amazing. Thanks to all the people who use this as a wedding song, soundtrack to a date, and as a way to woo someone into a netflix-and-chill situation.”
This isn’t even his first major Spotify record – Sheeran was named the most-streamed artist overall last year. As of now, he’s the second-most streamed artist, behind Eminem.
Speaking of hundreds of millions of listens, the official music video for “Thinking Out Loud” has a whopping 755 million+ views.
Spotify shared some additional Sheeran facts, like him being on 38 million separate playlists – one in four users has at least one Ed Sheeran song on a playlist.
According to a new report, Spotify is planning on making its free tier a lot less appetizing in the hopes of assuaging major labels and getting more users to pony up and pay for its premium service.
Digital Music News quotes “several sources” who claims that Spotify “will soon be shifting towards a premium-only, ‘gated access’ model.”
What does this mean, exactly? Well, the sources aren’t even sure – as it’s still being hammered out. But it could mean that Spotify cuts off access to some of its content – unless you pay for premium.
As of now, Spotify’s free-tier users still have access to everything. Sure, there are ads and users have to listen to albums in shuffle mode – but nothing is off limits, really.
The report suggests that Spotify could block access to certain high-profile releases – maybe offer free users only a few songs from a new album.
Or, in another scenario, free users’ access to certain tracks could be limited to a strict window.
The same publication quoted sources in May who said that Spotify was bowing to pressure from the big labels and planning on limiting its free tier to a three-month trial. That report said that new Spotify users would be limited to three months of free, ad-supported listening. Existing free tier users would have a six-month grace period before being forced to upgrade to a paid tier.
Of course, that’s not happened. This new report seems like a less drastic version of that – as Spotify is clearly looking to boost its paid customers.
Last month Spotify hit 20 million paid users and 75 million total active users, meaning 55 million free tier users stand to be affected by any decrease in streaming access.
Vanity Fair has a new interview with Taylor Swift, and the publication previewed it today.
Let’s just say Taylor Swift is still a little pissed at Spotify, or as she calls it, a “start-up with no cash flow.”
Here’s what Swift had to say when discussing her now-famous letter to Apple:
“Apple treated me like I was a voice of a creative community that they actually cared about. And I found it really ironic that the multi-billion-dollar company reacted to criticism with humility, and the start-up with no cash flow reacted to criticism like a corporate machine.”
Ouch.
Back in June, Taylor Swift admonished Apple for its plan to not pay artists, producers, or writers during the three-month free trial period that all new subscribers got when the service launched.
“I say to Apple with all due respect, it’s not too late to change this policy and change the minds of those in the music industry who will be deeply and gravely affected by this. We don’t ask you for free iPhones. Please don’t ask us to provide you with our music for no compensation,” she wrote.
“[M]usic is changing so quickly, and the landscape of the music industry itself is changing so quickly, that everything new, like Spotify, all feels to me a bit like a grand experiment. And I’m not willing to contribute my life’s work to an experiment that I don’t feel fairly compensates the writers, producers, artists, and creators of this music. And I just don’t agree with perpetuating the perception that music has no value and should be free,” she said.
Apparently, Swift is pleased with the way Apple handled things and thinks “no cash flow” Spotify needs to work on its public relations.
In the interview, which you can find here, Swift explained the impetus behind her letter to Apple.
“I wrote the letter at around four A.M.,” Swift says. “The contracts had just gone out to my friends, and one of them sent me a screenshot of one of them. I read the term ‘zero percent compensation to rights holders.’ Sometimes I’ll wake up in the middle of the night and I’ll write a song and I can’t sleep until I finish it, and it was like that with the letter.”
When it comes to differentiating itself for the pack, there’s only so much a streaming music service can do in terms of content acquisition – they either have a song, or they don’t. Exclusives and better licensing deals can make one service more attractive than the other, but for the most part, most top-tier streaming platforms all offer the same music.
Surfacing that music and getting it to subscribers’ ears is how a streaming service can stand above the crowd – so personalized playlists and specialized curation are what services like Apple Music, Google Play, Pandora, and Spotify are putting a lot of work into these days.
Spotify is the latest to offer something new. The company is calling it Discover Weekly, and it’s an evolving playlist of “new discoveries and deep cuts” delivered to users every week.
Each playlist will be crafted based on your current listening habits and the activity of other Spotify users.
“For the first time ever, we’re combining your personal taste in music with what similar fans are enjoying right now. This means every song in Discover Weekly is based both on your own listening as well as what others are playlisting and listening to around the songs you love – making your playlist completely unique and full of deep cuts and new discoveries,” says Spotify. “It’s like having your best friend make you a personalized mixtape every single week.”
The Discover Weekly playlist will update every Monday, and will contain about two hours of music.
“As your music taste evolves, so will Discover Weekly. In fact, the more you listen, the better it gets. And because it’s a playlist you can access and listen to it across all your platforms and devices. Plus, sharing it with friends or making it available offline for your Monday commute is super easy.”
You can find it sitting atop your playlist section in the coming weeks.
Neil Young says he’s pulling his music from streaming services.
No, Young’s issue isn’t money, like Taylor Swift or Prince – Young’s problem is with sound quality, which he calls the worst “in the history of broadcasting or any other form of distribution.”
Streaming has ended for me. I hope this is ok for my fans.
It’s not because of the money, although my share (like all the other artists) was dramatically reduced by bad deals made without my consent.
It’s about sound quality. I don’t need my music to be devalued by the worst quality in the history of broadcasting or any other form of distribution. I don’t feel right allowing this to be sold to my fans. It’s bad for my music.
For me, It’s about making and distributing music people can really hear and feel. I stand for that.
When the quality is back, I’ll give it another look. Never say never.
You may recall that Neil Young is the guy behind Pono – the supposedly higher quality music player and service that launched back in January after a successful Kickstarter campaign. It’s been called a “tall refreshing drink of snake oil” and the generalconsensus is that it’s something that only a very select group of audiophiles can appreciate. Kind of like TIDAL.
If you want to stream Purple Rain or the Batman soundtrack this weekend (and you might, I dunno), you’re going to have to head to TIDAL.
Or Soundcloud, or YouTube – but officially, TIDAL.
Prince has pulled all of his music from Spotify, Apple Music, and Rdio. The only place his catalog is still up and running is on Jay Z’s TIDAL service.
It’s not clear what prompted Prince’s decision, but it’s not shocking considering his views on the value of his music and his past disapproval of many different internet avenues leading to it.
Here’s what it says on Prince’s artist page on Spotify:
Prince’s publisher has asked all streaming services to remove his catalog. We have cooperated with the request, and hope to bring his music back as soon as possible.
This isn’t the first time that Prince has made sweeping gestures with new music technology. Last November, Prince removed all of his music from YouTube and deleted his Facebook and Twitter accounts. He’s since returned to social media. As for his relationship with streaming, Prince recently used TIDAL to stream his Rally 4 Peace in Baltimore
Looks like TIDAL just got another exclusive, probably. It needs it.
To some people Google Play Music, Google’s subscription music streaming service, may have gotten lost in a sea of other offerings. But now, just a week before Apple launches its new music streaming platform, Google is reminding you about its own service and sweetening things a bit.
Starting today on the web and soon on iOS and Android, Google is offering a free, ad-supported tier to Play Music.
No, you won’t be able to call up songs on-demand. Much like Pandora or Spotify’s free tier, Google Play Music’s free tier is based around “radio” stations – curated playlists based on specific songs, artists, or moods.
“At any moment in your day, Google Play Music has whatever you need music for—from working, to working out, to working it on the dance floor—and gives you curated radio stations to make whatever you’re doing better. Our team of music experts, including the folks who created Songza, crafts each station song by song so you don’t have to. If you’re looking for something specific, you can browse our curated stations by genre, mood, decade or activity, or you can search for your favorite artist, album or song to instantly create a station of similar music,” says Google Play Music product manager Elias Roman.
Of course, the goal for Google is to get people in the door and hope they decide to upgrade to the paid tier. The company isn’t shy about this.
“We hope you’ll enjoy it so much that you’ll consider subscribing to Google Play Music to play without ads, take your music offline, create your own playlists, and listen to any of the 30 million songs in our library on any device and as much as you’d like,” says Roman.
Another day, another free, ad-supported internet radio. Google is banking on the fact that people will be interested in its “expertly” crafted playlists.
Spotify has a message for Apple and its new Apple Music venture – you’re starting well in the hole.
The streaming music company has just announced it has hit 20 million paid subscribers, and 75 million total active users (meaning 55 million free tier users).
Year-over-year, that’s a 100 percent increase in paid users. In May of 2014, Spotify reported 10 million paid subscribers and 40 million total active users. In January, those numbers were 15 million and 60 million, respectively.
The new figures mean something significant for Spotify – it’s the first time the ratio of paid subs vs total subs has increased in about two years.
In a blog post, Spotify also pushed back at claims that it’s bad for artists. According to the company, it paid out over $300 million in royalties in the first three months of 2015.
“More people listening on Spotify means more payouts to the creators of the music you love. As we grow, the amount of royalties we pay out to artists, songwriters and rights holders continues to climb faster than ever. We have now paid more than $3 billion USD in royalties, including more than $300 million in the first three months of 2015 alone. That’s good for music, good for music fans … and good for music makers,” says the company.
Still, Spotify says that payouts will dramatically increase over the next year – given its uptick in paid subscribers.
Spotify has also closed a new round of funding that will put $526 million into its pockets, according to the Wall Street Journal. This will surely help the company battle the newly-announced Apple Music.
While subscriber growth – especially the paid kind – is wonderful for Spotify, it’s not all sunshine and roses. As Peter Kafka at Re/code points out, “the flip side of Spotify’s user growth is that its losses continue to increase. The company says that in 2014 it lost $197 million, up 289 percent from a $68 million loss in 2013. In the same period, Spotify’s revenue was up 45 percent, to $1.3 billion.”
How will Apple Music fare in an already crowded field of streaming music providers? That’s yet to be seen. But it appears that its introduction is already affecting the market.
Spotify, the biggest hurdle Apple Music will have to jump if it wants to dominate in this arena, might be looking to lower some of its prices to compete with Apple Music, which rolls out on June 30.
Apple Music will cost $9.99 per month for a single user – just like Spotify. But Apple is offering a highly competitive family plan – six users for just $14.99 per month.
Currently, Spotify’s family plans are $14.99 per month for two users, $19.99 for three, $24.99 for four, and $29.99 for five users. But Apple Music may have forced Spotify to reconsider that structure.
“We already have similar family pricing in some markets and we expect to offer competitive pricing everywhere in the near future,” said Jonathan Price, Spotify’s global head of communications and public policy. He pointed out that in Sweden, Spotify already charges roughly $20 a month for a family of five.
Apple Music didn’t seem to impress Spotify CEO Daniel Ek, who tweeted “Oh, ok” after the company revealed the new service at its WWDC conference Monday. He quickly deleted the tweet.
It’s ambitious, but Spotify would like to be your all day media hub.
The streaming company, with over 60 million users worldwide (about a fourth of them paying subscribers), say it’s “obsessed with figuring out how to bring music into every part of your life, wherever you are, whatever you’re doing, whatever your mood.” And it’s just made a bunch of announcements concerning an all-new Spotify that rolling out today for iOS users in the US, UK, Germany, and Sweden.
Spotify has always offered playlists and allowed users to build their own. Spotify has also suggested music based on users’ activity. But with the new Spotify Now, the service is going to attempt to soundtrack your entire day.
“From the time you wake up until tonight’s party, the Now start page serves you the right music day and night. Need a Monday morning playlist pick-me-up? Done. The right tunes to help you focus after lunch? We’ve got you covered. And because Now learns what you like, you’ll be sure to hear the right music – selected from our in-house experts and your personal collection – whatever the occasion. Recommendations will adapt over time to fit your taste and mood,” says the company.
One big emphasis is on running. Spotify says that its new running-specific playlists will “detect your tempo, matching the perfect music in time to your step.” In the future, you can expect new Spotify partnerships with Nike and RunKeeper.
Smart playlists are great and all, but Spotify’s biggest announcement involves an expanded media presence. Spotify is now doing videos and podcasts.
“For the first time, Spotify is adding video clips and audio shows to the music mix. We know there are times in the day you want to switch between music to catch up on the latest news, listen to your favorite podcast or simply watch something fun. And with a stellar range of entertainment to choose from there’s something for everyone. Spotify will suggest video and audio shows for you to watch and learn what you love,” says the company.
This includes original content and videos from partners including ABC, Adult Swim, BBC, Comedy Central, E!, ESPN, Fusion, Maker Studios, MTV, NBC, RadioLab, Slate, TED, TWiT, Vice News, and WNYC.
Spotify says the new experience will hit other markets and platforms “in the near future.”
Coffee kingpin Starbucks and bane of Jay-Z’s existence Spotify have just announced a huge partnership to create a “first-of-its-kind music ecosystem.”
What that means is that soon, the Starbucks music experience will be powered by Spotify – and more specifically, the musical tastes of its employees.
From Spotify and Starbucks:
Coming first, Starbucks 150,000 U.S.-based partners (employees) will receive a Spotify Premium subscription, followed shortly thereafter by partners in Canada and the U.K. This fall, Starbucks partners can help shape the in-store music programming using tools provided by Spotify. These partner-influenced playlists will then be accessible on Spotify via the Starbucks Mobile App so that customers can stream music anywhere, anytime from their mobile device.
The deal links up Spotify Premium with Starbucks’ loyalty program.
“In addition, Spotify users will enjoy opportunities to obtain “Stars as Currency” for My Starbucks Rewards loyalty program. This will represent the first time that Starbucks loyalty program stars can be accessed by a third party for the benefit of Starbucks MSR members and Spotify users,” says a press release.
Eventually, Starbucks MSR members will have “the ability to influence in-store playlists”, although to what degree is still yet to be revealed.
“Starbucks has a rich music heritage and customers who are passionate music fans which makes us incredibly proud to be their music partner,” said Daniel Ek, CEO of Spotify. “Spotify has powered more than 25 Billion hours of listening around the world so far, and we’re looking forward to creating unique in-store music experiences while also making more than 20 years of popular Starbucks music available to both Starbucks customers and Spotify’s 60 Million global music fans.”
And Starbucks will promote Spotify Premium.
Sounds like a win-win for all involved – unless your barista likes Justin Bieber.
File this under interesting, but unconfirmed, reports.
Earlier this month, reports said that Apple was doing its damnedest to kill Spotify’s free tier. Apple, of course, is planning on relaunching is Beats Music-based streaming competitor this summer (likely at its Worldwide Developers Conference). The reports suggested that Apple has been attempting to convince the major record labels to stop licensing their music to the likes of Spotify and its free tier – in the hopes that such a decision would devastate Spotify’s business model.
The goal being less competition for Apple’s music service, naturally.
Now, Digital Music News is quoting “multiple sources” who say that Spotify may be bowing to pressure from the big labels and planning on limiting its free tier to a three-month trial.
Apparently, new Spotify users would be limited to three months of free, ad-supported listening. Existing free tier users would have a six-month grace period before being forced to upgrade to a paid tier.
“It’s weaning them off free, is one way to think about it, while making [Spotify] more in line with [other streaming services],” one source told Digital Music News.
The seriously curtailed window is being presented as a ‘proposal,’ but one source pointed to limits on the “spirit of collaboration” being floated. “This was drafted as a sort of compromise idea in mind,” one source described to Digital Music News, while also noting that “close observation” will determine if users are pushed towards premium plans more aggressively.
Spotify has over 60 million users worldwide. Only a fourth of them pay for the service. It’s hard to imagine Spotify forcing everyone to pay at some point, as that could kill subscriber counts. But Spotify’s whole schtick is that it gets people in the door with its free tier, and hopefully they become paid subscribers.
Once again, this is a one-source report, so take it with a grain of salt. But it’s an interesting thought – is your Spotify free ride coming to an end?
A Spotify video service may soon be a reality if there’s any weight to the latest reports making the rounds.
The Wall Street Journal is reporting that Spotify is now trying to get a video service off the ground. Mike Shields and Jens Hansegard write:
Music streaming service Spotify is laying plans to enter the hotly competitive Web video business and has been in discussions with several digital media players about potential partnerships, according to people familiar with the matter.
The closely-held streaming service, which has shaken up the recording industry over the past few years, has been reaching out to companies that specialize in making content for YouTube to discuss both acquiring their material and co-creating original video series, said people familiar with the matter. Spotify has also reached out to some well-known traditional media companies.
Rumors of a Spotify video service are nothing new. There were reports at least as far back as early 2013 about such a plan. Those reports had the company taking on Netflix and HBO with high quality original content.
There is certainly a great deal of opportunity in video advertising these days, which Spotify does already offer. It introduced video ads in September:
“Spotify Free users can watch a brand-sponsored video spot (aka a Sponsored Session) in exchange for 30 minutes of uninterrupted music,” the company explained. “Brands can also sponsor a video ad break on desktop with a Video Takeover. Both formats are delivered in a 100% viewable environment and give our brand partners 100% share of voice.”
“Our audience is incredibly engaged so we are delivering an advertising experience that enhances their time spent on Spotify and connects them to the music and brands they love,” added Jeff Levick, Spotify’s Chief Business Officer.
A recent study from Advertiser Perceptions and the Interactive Advertising Bureau (IAB) found that 68% of marketers and agency execs expect their digital video ad budgets to increase over the course of the next year.
The study was conducted based on a survey of 305 buy-side professionals, who largely expect that greater investment in digital video will come from overall rising ad budgets this year and as funds shift away from broadcast and cable TV. 67% said they anticipate their broadcast and cable TV ad spend to stay the same or decrease in the next year.
67% also believe that original digital video will become as important as original TV programming within the next 3 to 5 years.
“This study demonstrates unequivocally that digital video is a fierce competitor for advertising dollars,” said Sherrill Mane, SVP, Research, Analytics, and Measurement at the IAB.
Spotfiy, which has benefited from a great deal of Facebook exposure over the years may find to break into that same kind of visibility with a potential video product. Facebook is already advising page admins against posting videos from third-party services in favor of promoting its own native videos, which are drawing a great deal of those ad dollars.
Last month, Spotify began letting brands tailor ads based on mood with playlist targeting.
Apple knows it’s going to be an uphill climb when it relaunches its Beats-based music streaming service this summer – and the company may be taking some rather direct measures to cripple the competition.
According to a report from The Verge, Apple has been attempting to convince the major record labels to stop licensing their music to the likes of Spotify and its free tier – in the hopes that such a decision would devastate Spotify’s business model.
Of Spotify’s 60 million users, only 15 million pay for the service. The rest subscribe to the free, ad-support tier.
According to the report, “Apple offered to pay YouTube’s music licensing fee to Universal Music Group if the label stopped allowing its songs on YouTube.”
And all of this maneuvering has apparently gotten the attention of the Justice Department.
Sources say the DoJ is already interviewing people about Apple’s business practices. “All the way up to Tim Cook, these guys are cutthroat,” a source told The Verge.
Apple plans to launch their streaming music competitor at its annual Worldwide Developers Conference in June. The offering will be wrapped up in Beats Music, which Apple acquired last year. It is expected to run $8 per month, or just a little less than Spotify premium.
Spotify’s ad offerings for brands have included audience targeting for some time – based on age, gender, location, platform, and genre preferences. Now, Spotify’s turning to playlists to unlock users’ current moods, so advertisers can know if users are in chill mode or turn-up mode.
The company has just announced playlist targeting for brands, set to kick off May 1.
“Music is an integral part of life, day in and day out,” said Jeff Levick, Chief Revenue Officer, Spotify. “Our new targeting solutions based on rich behavioral insights combined with our global footprint in 58 markets give brands unprecedented ways to reach streaming consumers.”
Spotify is leveraging all of its playlist data – based on more than 1.5 billion playlists – to provide advertisers with a glimpse into a user’s mood.
“We leverage first-party data to identify user-generated and Spotify-curated playlists aligned with popular activities and moods. We create audience segments by identifying users that listen frequently to playlists in each category. We refresh segments daily based on new playlists, new users, and overall streaming activity,” says Spotify.
Out of the gate, brands will be able to reach users based on a handful of activities and moods, signaled by playlists. These include workout, party, focus, commute, relax, travel, dining, and romance.
So, a coffee brand could play an ad to a user on his/her way to work, or a cruise line could play an ad for someone in the “travel” mood.
According to Ad Age, Spotify has been testing playlist targeting for a few months with eight brand partners.
“This is not something that’s just randomly thrown out there. It’s a strategic evolution of the Spotify ads business going back a year and a half ago with the mobile licenses,” said Spotify’s VP-North America advertising and partnerships Brian Benedik.
Playlist targeting will be available for brands at the start of next month, targeted to Spotify’s free-tier users. Earlier this week, Spotify began running a “tweet the beat” promotion, which basically amounts to an ad for all users – even those paying for premium.
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