This will give you access to more than a billion potential users in Asia, Africa and Latin America, among others, said Spotify manager Alex Norström on Monday. The company from Sweden has so far been active in 93 markets. With 345 million users, 155 million of whom are paying subscribers, Spotify is number one in the streaming business ahead of Apple Music.
Spotify expects music streaming to generate industry-wide revenues of $ 56 billion by 2023 – and to generate more revenue in 2025 than the industry achieved at the height of the millennium. In addition to the subscription income that dominates today, advertising will also become increasingly important, predicted the head of the advertising business, Dawn Ostroff.
The innovations announced on Monday include a platform for displaying advertising in podcasts.
The much smaller competitors Tidal and Deezer already have such subscriptions in their program at higher prices.
The music industry has found new growth in streaming after the doom and gloom caused by software piracy at the end of the CD era. At the same time, the streaming model is changing business: more individual songs are heard instead of albums – and it is becoming more important for artists to appear in playlists, since the income depends on the number of views.
The Spotify share climbed on the NYSE on Monday by 4.06 percent to 379.18 US dollars.
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