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Spotify Spotlight: Why people are obsessed

Spotify is a platform that offers digital music, podcast, and video service. You can access content created by a variety of creators and listen to the millions of songs available.  Their valuation has reached an all-time high and it is valued at $67 billion (Music Business Worldwide). They were valued at $29.5 billion in 2019. There is significant growth happening for this Sweden-based company. In this post, we will be taking a closer look at what they are doing to be as successful as they are. 

Spotify is a platform that offers digital music, podcast, and video service. You can access content created by a variety of creators and listen to the millions of songs available.  Their valuation has reached an all-time high and it is valued at $67 billion (Music Business Worldwide). They were valued at $29.5 billion in 2019. There is significant growth happening for this Sweden-based company. In this post, we will be taking a closer look at what they are doing to be as successful as they are. Spotify is available on multiple platforms such as Android and IOS but they also have computer applications that can be installed on both your Windows and Apple macOS computers. They also have introduced the “Spotify Connect” function to help users connect their phones or computers to an entertainment system such as your smart home devices and smart TVs. This ease of use and functionality enables consumers to use the services as they like and will be able to access them from anywhere. There is a premium membership offered for features like listening to whichever song you would like on a playlist and not having to listen to it on shuffle. Whether you have a premium membership or not, you get personalized recommendations based on your history and can build collections to your liking. The customizability allows the customers to listen to the music they enjoy with ease. They are currently available in 92 countries such as Japan, Austria, Egypt, Australia, and Canada (Moi Global).

In the graph below you can see the distribution for their active users among regions. The majority of their users are from Europe, North America, and Latin America. They have a significant portion of the rest of the regions they the platform is available. They customize their content based on the country. They offer various playlists customized based on the country the user is from. The customized content allows the customers to enjoy the music with ease. 

They have 155 million premium members and 345 million active monthly users (The Verge). However, these numbers are a 24% increase from the previous year. One of the key things contributing to their success is that they are heavily investing in podcasts and they are signing big names such as Prince Harry and Megan Markle (The Verge). These big names drive a lot of listeners to their platform. Spotify is also taking things to the next step by getting into audiobooks such as books read by celebrities. This is also driving a lot of attraction from the fans of different books or fans of the celebrity.  

Offering a wide variety of music and podcasts to their customers and customizing their content based on their taste in music is definitely helping Spotify get ahead. They are partnering with celebrities and other creators to bring entertaining content. Spotify is continuously investing in the company to bring more services to their customers and you can see from the numbers that it is working to their advantage. As the technology evolves and the competition increases, it will be interesting to see what other actions they will take to stay competitive globally.

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