Spotify Transitions from Streaming Music Service to Music Platform

spotify

Have you moved into the world of music streaming and music subscription services as your go-to as opposed to your default iTunes or even YouTube for that matter? There are a few major players with some unique offerings: Pandora, Rhapsody, MOG, Rdio, The Vault (HMV), Grooveshark, LastFM, Slacker, Songza, Spotify, and many others I haven’t mentioned. There’s even a new, highly anticipated service, coming from Jimmy Iovine, Ted Rodgers, and Trent Reznor called “Beats”. iTunes may even have something up its sleeve – Apple has clearly missed the boat on a streaming or subscription based music model.

I’ve enjoyed a few of these services as some aren’t available in Canada…yet. As mentioned some are all the same and some offer some pretty unique features. Spotify and Rdio are two to check out for sure. To get an idea of how far one service has come, check out what musicindustryblog.wordpress.com has to say about how Spotify has transitioned from a streaming music service to a full on music platform:

“Spotify today gave an update on the year to date and announced a host of new features.

5 Million Paying Subscribers

As expected Spotify has managed to hit the 5 million paying subscriber mark which is a fantastic achievement, as is the 1 million US paying subs also announced.  That translates to 1 million new paying subscribers in just 3 months.  Back in May I predicted that Spotify would hit 8 million paying subscriber in May 2013.  It looks like that prediction is going to be in the right ball park.  Spotify’s official active user count is now 20 million, which interestingly is much closer to the Facebook reported 24 million – those numbers have been very far apart for the last 9 months or so.  Which indicates that Spotify’s marketing funnel has got bigger as its profile in the US has grown.  i.e. more people are trying out the free service. (See the graphic at the bottom of the page for a summary of Spotify’s numbers).

Spotify also announced it has paid out $500 million to rights owners, which is impressive, but to keep a sense of perspective is about 2% of all digital music service money paid to record labels globally since 2009 when Spotify burst onto the scene.

A Bold New User Experience

But of more interest, to me at least, was a slew of new features that collectively transform the Spotify experience.  Spotify has made a bold UI transformation from a list-based approach to a rich visual experience with modules of music content (which visually looks like a cross between Rdio and Pinterest).  These include music, artwork, bio information, reviews from Pitchfork, Songkick gig information, recommendations based on your behaviour.  In doing this, Spotify has made a subtle but powerful transition from streaming music player to immersive music platform”.

Read the rest here.