The music industry is full of competition and not just to the musicians, but also the music streaming platforms. Pandora was the top dog for many years way before we heard of Spotify. Years down the line, it acquired millions of users and subscribers. In 2019, it only had about 63.5 million users and 6.2 million subscribers. However, like any other industry, there must be stiff competition.
Spotify is currently the leading music streaming platform in 2020. But there are other big threats to the company like Amazon Prime Music and Apple Music. This means that Spotify can also be a memory to many if it fails in its services. Competition is common in the entertainment industry, even to the gaming industry, whereby developers fight for the attention of players. And it is not just video games but also free spiny za rejestracje.
Spotify is a Swedish-based media streaming provider launched in October 2008. Over the years, it has managed to accumulate millions of users from across the world in over 90 countries. As the leading provider, the company has won a couple of awards including the Best Streaming Service three years straight from 2018 to 2020.
Spotify recently released its financial results for July to September. The numbers are high, but still not enough. According to the reports, the platform currently boasts over 320 million active users. This is an increase of up to 7% from the 299 million active users, which was reported for the Q2 2020 financial results. This is also 29% more of the 233 million active users in the Q2 of 2019. There is also an increase in the premium users, which are now 144 million. This is an increase of 5% from Q2 2020, which had 130 million subscribers.
These numbers are higher than other platforms like Amazon Prime Music, which reported 55 million users in January 2020, and Apple Music, which had 60 million subscribers as of June 2019. As a result, Spotify is still the leading music streaming service, but this might change soon due to a couple of reasons:
- Rising Competition in the industry: The music streaming services are heating up, and more platforms are focused on providing its listeners with exclusive content.
- They Don’t Own Any Content: Spotify does not own any content and depends on the Big Three music labels, which is also what the competitors like Apple Music are using.
- It is not the Only One Offering Exclusive Content: Even though Spotify is concentrating on providing exclusive content, it is not the only one. Apple too offers exclusive music content from artists like Taylor Swift and Drake.
- It is Losing Market Share: Other platforms have realized the benefits of audio streaming services. Their entrance into the market leads to Spotify losing its market shares.
- The Growth of Number of Premium Subscribers is Slowing Down: Even though the platform has gained subscribers, it is not as many as they expected. The reports show that this process is slowing down over the years. The subscribers are one of the ways Spotify generates revenue, and if the numbers are slowing down, so will its revenue.
Looking forward, Spotify expects to grow its listeners and subscribers in a few months. However, the music industry is growing, and so will the rivalry. If Spotify does not figure out unique services to make it stand out from its rivals soon, then it might lose its spot.