Spotify needs new sources of income

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Avatar for antibiottics
4 years ago

In the first month of 2020, Spotify shares have fallen by 12%. The analysts believe that growth will slow down in the future as Spotify gains less new customers.

Now Spotify could simply raise prices to meet revenue targets, but this carries a high risk of losing customers to other streaming services. It is also important to note that many of Spotify's customers are teenagers who do not have the highest spending power.

For this reason I believe that Spotify urgently needs new revenue streams to defend its impressive dominance among streaming services. I have some suggestions:

1. LIVE STREAMING RADIO

Spotify should allow people to stream Liveradio and access Spotify's complete catalog of music while doing this. There could also be a kind of "social radio" where listeners could add requests to the station playlist or upvote them so that they are played again earlier. Such a service would certainly be worth an additional monthly fee to a lot of people and it can be expected that a lot of radiostations will switch to the Spotify platform.

2. LICENSE FOR BUSINESS USE IN PUBLIC PLACES

Spotify should be legally usable in clubs, restaurants and public places for an increased fee. Especially the use of Spotify by DJs is a huge market and with DJ Pro by the Company Algoriddim (https://www.algoriddim.com/) a great DJ Software for Spotify with a lot of functions is already available.

Sadly under the current terms of use it is not allowed to use the software commercially for example in a club.

3. PAID CURATORS

Spotify should allow people to make money with their playlists. Let's say someone uses Spotify in an Italian restaurant. He would like a constantly changing mix of Italian classics and new pop songs as background music. Unfortunately he has no idea about music. Besides, he doesn't want to care about the music at all, but about good food. So, for example, why not get a Spotify playlist for $10 a month from a professional curator who will take care of it. The fee for the playlist could be shared between the creator of the playlist and Spotify.

Do you have any further ideas for the future of Spotify, or an opinion on my suggestions? I look forward to your comments.

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$ 2.00 from @MarcDeMesel
Avatar for antibiottics
4 years ago

Comments

"This is a problem-solving article. It highlights the problems faced by spotify and suggests possible solutions". Kudos to you for this outstanding job!

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3 years ago